On the last market update, we highlighted the support/resistance levels in EUR/USD. Now, we will look at two forex pairs that are on the extreme sides of the market, USD/JPY and GBP/USD. One is a safe heaven; the other is a risk asset. Let´s start with Cable. 

GBP/USD

Resistance – The 20 moving average (20 SMA) on the H1 forex chart comes at 1.2150-60, which is just above where the price is right now. It has been providing resistance today so that will be the first level of resistance, albeit very weak. 

Yesterday, during the London trading session, the 1.2180 level was providing some sort of support and once it was broken, it turned into resistance. It´s been the high so far today, so it´s only logical that we count this as the second resistance level. 

As you can see on the H4 GBP/USD chart below, the next resistance level comes at 1.22. That´s been the low for the last two weeks and the 50 SMA in yellow is getting there fast, so that´s a decent resistance level in my opinion. In fact, I´m looking to open a short term forex signal in this pair. 

The first line is where I´m looking to sell this pair. 

The 1.2270 level is another level which might provide resistance because it has provided support recently but it´s now broken. Besides that, the 100 simple and smooth moving averages are hanging right there on the H1 chart.

Support – Yesterday´s low at 1.2120-25 is the closest support for this forex pair, which is followed by today´s low at 1.21. This is a very meaningful level because it´s been a multi-decade low if we don´t count the GBP flash crash in October. 

If that level goes, then it will open the door for further declines. 1.20 will obviously be a big level, but 1.2050 might be an obstacle before we get there, if that´s what the forex market wants to do. 

The ultimate level, though, remains 1.19. It was the low during the GBP flash crash and almost all forex brokers have adjusted the prices for that occasion to match 1.19. If that level goes, then the Pound will be doomed.