GBP/USD was hit by referendum news in the beginning of the week and then recovered completely to fill the gap. The pair has come to strong resistance at 1.6275 provided by the price action as well as 4H MA(55). This strong level may bring new decline back at least to 1.6220, its weekly POC. The most crucial impact is expected from news surrounding Scottish referendum. Negative news will probably hit the pound so much it will tumble to this week Low at 1.6050. A psychologically strong 1.6000 level will probably be tested, too. On the other hand, positive news from Scotland will push GBP/USD higher and probably to 1.6460 or maybe even to 1.6575 resistance. As already mentioned, weekly POC at 1.6220 may provide good support and push cable higher. If broken, a drop to 1.6000-50 will be expected.
There are 2 ideas to consider next week:
- A decline to 1.6220 or even to 1.6000-50 if caused by negative news from the UK. 1.6000-50 support will be crucial in this case.
- A rise above 1.6275 with next target at 1.6400-60 with a possible drop to 1.6300 thereafter.
On the upside, GBP/USD will probably face resistance at 1.6275 provided by the price action and 4H MA(55). If the pair climbs above there, next target to consider will be around 1.6400-60. In case of an advance above, the pair is expected to target 1.6575. If the pair rises above this resistance, the way to 1.6720 will be open. A jump above 1,6720 will signal GBP/USD climbing as high as 1.6770. If this resistance is broken, the cable will probably soar to 1.6820. An advance above 1.6820 will open the way for further rise to 1.6880 next. A rise above this resistance will pave the road to monthly July VAL around 1.6975. If the pair climbs above 1.6975, this will set 1.7070 resistance for test next.If the pair climbs above the resistance mentioned above cable will probably target 1.7130-50 next.If GBP/USD soars above 1.7150 it will try to test recent high around 1.7200. The rise above 1.7200 will probably mean GBP/USD is going to target 1.7500.
On the downside, GBP/USD is around strong resistance and a plunge from 1.6275 is very likely. In this case, first support to consider will be at 1.6220. A plunge below the abovementioned level will pave the road towards 1.6000-50. If GBP/USD plunges below there, down trend will probably continue to 1.5850. A slump below 1.5850 will pave the road towards 1.5000 support.
AUD/USD was in a strong down trend this week not seen since last year. The Aussie plummeted from 0.9400 to strong support near 0.9030. The pair is clearly oversold and may retreat back to 0.9200-20 area. AUD/USD can continue its slump to next strong support near 0.8900-10. On the upside, the pair will probably face resistance at 0.9200, its weekly POC. Developing monthly VAL is also around 0.9200, so this level is extremely important and a retreat back to 0.9200 is very likely. A rise above 0.9200 will pave the road to strong resistance near 0.9320.
There are 2 ideas to consider next week:
- Down trend continuation to 0.8900-10 with a subsequent rebound towards 0.9200. The pair may break below 0.8900 and slump towards 0.8660.
- A rise back to 0.9200 resistance with a plunge to 0.8900-10 thereafter.
On the upside, AUD/USD has not broken support at 0.9030 and may rebound from there to first strong target at 0.9200. A rise above 0.9200 will open the way towards next resistance around 0.9320. An advance above 0.9320 will pave the road to 0.9400. If the pair soars above 0.9400 the way to 0.9450 resistance will be open. A rise above this level will set 0.9500-10 resistance for test next. An advance above the resistance mentioned above will pave the road to 0.9700.
On the downside, AUD/USD was extremely bearish this week and this plunge will probably continue t next target at 0.9000. A slump below 0.9000 will set next support near 0.8900-10 for test. Decline below 0.8900 will signal the pair is going to target 0.8800 next. A plunge to this year Low at 0.8660 is expected if AUD/USD tumbles below 0.8800.
Guest post by Dmytro Nest of NestFX.com
