It's time for Wednesday's Main Dukascopy Spike Controller. Let’s take a look at the average and peak spread levels for the three non-cross majors. Euro/Dollar…
GBP/JPY is expected to trade in bearish bias. The pair has broken below 140.90 level and expected to continue the downward movement, which should limit the upside potential and it is holding on the downside. In addition, the 20-period moving average is turning down and is likely to cross below the 50-period one in sight. The relative strength index stands firmly below its neutrality level at 50 and calls for a further downside. As long as the key level at 140.90 is not broken, a further upside to 139.20 and 138.50 is likely to occur.
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 139.20. A break below this target will move the pair further downwards to 138.50. The pivot point stands at 140.90. If the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 141.25 and the second one at 141.95.
Resistance levels: 1421.25, 141.95, and 142.50
Support levels: 139.20,138.50, and 138.00
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