Here’s the market outlook: Content courtesy of Tallinex Limited https://www.tallinex.com
Here is our latest market analysis update:
- GBP/USD reversed from resistance zone
- Next sell target – 1.2420
GBP/USD continues to fall after the recent downward reversal from the resistance zone lying between the key resistance level 1.2670 (which reversed the previous waves (a), 4, (ii) ,as can be seen from the daily GBP/USD chart below), upper daily Bollinger Band and the 50% Fibonacci correction of the earlier sharp downward impulse from September. The latest downward reversal from this resistance zone started the active minor correction (b). GBP/USD is expected to fall to the next sell target at the support level 1.2420 (former resistance level from the start of January).
- GBP/NZD falling inside intermediate impulse wave (3)
- Next sell target - 1.6860
GBP/NZD continues to decline inside the intermediate impulse wave (3) – which started earlier – when the pair reversed down from the resistance zone lying between the pivotal resistance level 1.7380 (former support level, which reversed the previous intermediate correction (2) in November), and the 50% Fibonacci correction of the earlier sharp downward impulse (1). The downward reversal from the aforementioned resistance zone created the daily Japanese candlesticks reversal pattern Bearish Engulfing. GBP/NZD is expected to fall to the next sell target at the support level 1.6860 (which reversed previous impulse wave (1)).
- USD/MXN falling inside primary correction ④
- Next sell target – 20.140
USD/MXN continues to decline – following the earlier breakout of the key support level 21.000 – which was set as the sell target in our previous forecast for this currency pair. The breakout of the support level 21.000 is likely to accelerate the active primary correction ④, which started earlier- when the pair reversed down with the weekly Japanese candlesticks reversal pattern Evening Star (its middle candle is also the weekly Shooting Star) from the resistance zone surrounding the resistance level 22.000. USD/MXN is likely to fall to the next sell target at the support level 20.140 (low of the earlier wave (4)).
- USD/ZAR reversed from major support level 13.2400
- Next buy target – 13.840
USD/ZAR continues to rise following the earlier sharp upward reversal form the major support level 13.2400 (which also stopped the previous waves 3 and (A), as can be seen below). The support zone near the support level 13.2400 was strengthened by the lower daily Bollinger Band. The upward reversal from this support level created the daily Japanese candlesticks reversal pattern Bullish Engulfing. USD/ZAR is likely to rise further to the next buy target at the resistance level 13.840 (which reversed earlier wave (iv) and (ii)). Buy stop-loss can be placed below the aforementioned strong support level 13.2400.
(Click chart to view full size)
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