The Pound fails at 167.10 and returns to the support area at 165.00. (Pivot Orderbook analysis)

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• The Pound fails at 167.10 and returns to the support area at 165.00.
• Below 165.00 the pair may activate an “H&S” pattern targeting 160.00 or lower.

The pair currently trades last at 165.88.

The previous day high was 168.32 while the previous day low was 165.97. The daily 38.2% Fib levels comes at 166.87, expected to provide resistance. Similarly, the daily 61.8% fib level is at 167.42, expected to provide resistance.

The Pound headed south against the Japanese Yen for the third consecutive day on Thursday, extending its reversal from Monday’s high at 169.05 to test the neckline of a Head & Shoulders pattern at 165.00.

The mild recovery attempt seen during the Asian and early European sessions lacked follow-through above 167.00, and the pair dropped sharply during the early US trading session, with the Japanese Yen skyrocketing after the release of US inflation data.

Yen strength has pulled the pair to test an important support level at 165.00, where the October 14 and 21 and November 3 and 4 lows meet the 50-day SMA.

Hourly charts show the pair close to overbought levels, which might favor some consolidation before further movement takes place.

A confirmation below 165.00 would increase negative pressure and send the pair to test the 100-day SMA, now at 164/05 area, and the 200-day SMA, at 162.10 before aiming for October’s low at 159.80.

On the flip side, the pair should breach intra-day resistance at 167.50 to ease negative pressure, and extend towards November 6 and 7 high at 167.11, which closes the path to the 170.00 psychological level.

Technical Levels: Supports and Resistances

EURUSD currently trading at 165.88 at the time of writing. Pair opened at 166.3 and is trading with a change of -0.25 % .

The pair is trading below its 20 Daily moving average @ 168.38, above its 50 Daily moving average @ 164.7 , above its 100 Daily moving average @ 164.0 and above its 200 Daily moving average @ 162.02

The previous day high was 168.32 while the previous day low was 165.97. The daily 38.2% Fib levels comes at 166.87, expected to provide resistance. Similarly, the daily 61.8% fib level is at 167.42, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 165.4, 164.5, 163.04
• Pivot resistance is noted at 167.76, 169.22, 170.12

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