Technical analysis – the week ahead

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The first pair this week is GBP/JPY. This pair has been in a downtrend since July 2015 and has now found itself inside a narrowing range. The price closed Friday at the resistance level which was previously a significant support level and a fib retracement level of 0.786. Also the price is showing overbought by the RSI being at a high of 65. I suspect the price to reverse to the previous low which if broken could continue the bearish trend.

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The next pair is USD/CAD. the price has been in a consolidation period after a strong bearish trend since may 2016. It has recently reversed at the top of the range showing a doji candle followed by a strong bearish candle. I suspect the price to continue bearish towards the support level and a fib of 0.786.

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Finally the USD/JPY. This pair has been in a bearish trend since the beginning of 2016 in a clear range. The price closed Friday at the resistance level and also at the moving average that has been consistently rejected. It has also hit the 0.618 fib level and a RSI high of 63. Suspect the bearish range to continue to the support and previous low from June.

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