Pound Yen – GBP/JPY rally higher after price rejected its 152.80 support level and also its bullish trend line as we expected in our 31st January 2018 Market Outlook. Traders who went long as we recommended may consider continue holding onto the long position with a trailing stop behind as price is likely going to continue to rally higher in the coming days.
Euro Pound – EUR/GBP rejected its 0.8820 resistance level which could potentially lead price lower in the coming days. Since the trend has turned bearish, we could potentially see price continue to decline lower in the coming days. Traders may consider shorting this market to ride on the potential bearish swing as well.
Aussie Loonie – AUD/CAD had a strong decline yesterday and is approaching its 0.9870–0.9850 support area. Given that the short term trend has turned bullish, traders may consider buying into this market if price indeed pullback into it. Ideally we would prefer to see some price rejections or any other form of confirmations before shorting this market to avoid false signals.