GBP/USD tests supply area
The pound holds onto its gains after the BoE raised its rates by 25 bp as expected. On the daily chart, the pair is still in a horizontal consolidation between 1.1800 and 1.2450. Zooming into the hourly time frame, Sterling has been recovering along a rising trend line which indicates mounting buying pressure. The supply zone around 1.2340 and 1.2400 from an early February sell-off is an important cap. A breakout could lead to a bullish continuation in the medium-term. The area between the trend line and 1.2220 is the first support.
USD/CHF gives up gains
The Swiss franc strengthened after the SNB also raised its policy rate by 50 bp. After hitting resistance at 0.9340, the US dollar has given back its latest gains, which indicates the bulls’ struggle to turn sentiment around. 0.9100 right over the double bottom (0.9080) on the daily chart is a critical floor and its breach would signal that the path of least resistance is down, potentially triggering a broader sell-off towards the psychological level of 0.9000. 0.9240 is the first resistance to ease the selling pressure.
EUR/JPY seeks support
The Japanese yen bounces back over an upbeat core CPI in February. The bears’ double push was halted at 139.00 with long lower shadows suggesting a rejection of lower offers. But the euro’s bounce turned south in the supply zone around 143.50 near the start of last week’s sharp liquidation. 140.50 is a key support to keep the rebound intact as a lack of follow-up buying may threaten the floor at 139.00. Buyers would regain control of the direction if they manage to push back above the fresh resistance at 143.00.
