Technical Analysis for GBPUSD, USDJPY, & EURUSD.

July 4 2022



Fridays sharp drop to our extended target of 1.1980 was quickly followed by a strong bounce back to 1.2120 Resistance.

To maintain upside momentum the GBP needs to break 1.2120 en-route to the strong resistance level of 1.2180/1.2200

A failure to break up through 1.2120 would see a retest of 1.2050/40 support. A break down here would see the GBP drop back down to 1.1980, and possibly lower.



Since briefly touching a high of 137.00 last week, the USDJPY has tested and broken some support levels in a corrective downside counter trend.

This mornings trade has seen a couple of attempts to break 134.80/70 which has so far held firm. However, if we do see a break down the next target will be 134.40/20.

Initial resistance is at 135.30 and then 135.80. If the USD Bulls can break back above 135.80 it should signify the end of the correction.



The USD failed on Friday to hold below 1.0400/1.0390 after breaking support.

When a break to the downside fails, we usually see a technical move back to the previous resistance area. In this case the EUR recovery has already seen a test of the first level of resistance at 1.0440/50.

To maintain the upside momentum, EUR bulls will want to see a break of 1.0450 for a run at 1.0480/90 and possibly 1.0530/40 in extension.

However, a loss of upside momentum would see another attempt at the downside support of 1.0400/1.0390 and possibly 1.0360.

Trade Forex at http://www.8dcglobal.com

Published by Neil Callard

Forex Trader and Educator. 30 years trading experience, of which 20 years was market making in major currencies in large international financial institutions.

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