February 15 2022
Cable tested strong 1.3500 support yesterday, but failed to make it break. This will please the GBP bulls. They will be further encouraged if the Pound can break back above 1.3560, a move that would provide some upside momentum, and a chance to test 1.3600 again.
If the GBP can’t break 1.3560, expect a drift lower, to look at support near to 1.3500. Which if broken will open up further weakness to 1.3450/40.
Yesterday’s session saw USDJPY test both support at 115.10/00 and resistance 115.70/80, without breaking either side. This failure to break sees us drifting around mid range today. The JPY is being driven around by geopolitical risk headlines, this is going to continue until the tensions with Russia and the Ukraine are resolved.
EURUSD is suffering from a combination of USD demand and risk aversion. The single currency dipped below 1.1300 briefly, but has since regained some composure.
Resistance is going to be found at 1.1340, which if broken triggers a move up to 1.1370/80.
Support is at 1.1280/70 if broken the target will be 1.1240/30.
Gold continues on its risk aversion bullish ride. However, in my view it looks a little over extended this morning. Resistance is found at 1880/82 and if broken, you could see further sharp gains to test 1888/90.
Immediate support is at 1870 and 1866.
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