EUR/USD, EUR/GBP and GBP/JPY are all pointing higher
EUR/USD and EUR/GBP near minor resistance while GBP/JPY resumes its ascent.
EUR/USD stalls amid weak German Gfk Consumer Climate
EUR/USD so far remains capped by the 55-day simple moving average (SMA) at $1.0617 after the European Central Banks’s (ECB) annual forum on Monday evening in Sintra, Portugal, and as the German GfK Consumer Climate comes in at -27.4 versus an expected -27.5 and weaker than its previous month’s revised -26.2. Monday’s high and the 55-day SMA at $1.0615 to $1.0617 remain in sight, a rise above which would target the four-month downtrend line at $1.0665.
An immediate bullish bias should remain in play while the cross stays above its one-month uptrend line at $1.0544 and, more importantly, last week’s $1.047 low. Only potential slips below last Wednesday’s low at $1.047 could lead to the 17 June low at $1.0445 being revisited. Below it major support continues to sit at the $1.036 to $1.035 May and current June lows.
EUR/GBP nears last week’s high at £0.8641
EUR/GBP once more flirts with its £0.8618 May high while targeting its £0.8641 high from last Thursday as the UK is bracing for further strikes in several sectors, including barristers, doctors, and airport staff, following last week’s largest ongoing rail strike in 30-years.
Resistance above last week’s high at £0.8641 comes in at the currency pair’s one-year mid-June high and the 200-week SMA at £0.8721. Friday’s low and the three-month uptrend line at £0.8562 to £0.8558 should continue to offer support.
GBP/JPY is expected to continue its advance towards the ¥170 region
The sell-off in the GBP/JPY from its April peak at ¥168.43 seems to have ended at its mid-June low at ¥160.00 with renewed upside having been seen since, as the Bank of England (BoE) is expected to continue raising interest rates and the Bank of Japan (BoJ) sticks to its ultra-easy monetary policy despite rising inflation.
From a technical point of view, a fourth Elliott Wave seems to have been completed at the recent ¥160.00 low, with a final fifth Elliott wave to the upside being in the making. It should take the cross to above its April and current June highs at ¥168.43 to ¥168.73 towards the ¥170.00 zone and above. On the way up, resistance comes in at last week’s high at ¥167.91 while last week’s low at ¥164.66 offers immediate support.
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