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Markets seem pretty quiet ahead of FOMC with investors looking for a 75bps hike. It is always good to know where any key support or resistance ahead of numbers so let’s have a quick look at some charts.

First up is the GBP/USD daily chart.

This has been gaining ground over the past couple of weeks and has now reached tougher resistance in the 1.2090/1.2105 region, which represents a combination of the 38.2% retracement of the move down from the 21 st April high and the 2-month downtrend.

While it holds, we are inclined to view the chart in a still negative light. If you are holding short positions in this one, we would consider tightening up those stops as a break above this band is likely to see a quick spike up towards the 55-day moving-average at 1.2242.

Above: GBP/USD daily chart.

EUR/USD is telling a similar story and is already backing away from challenging the previous May and June lows around 1.0350.

Our bias stays bearish on this one as well, with our attention still on parity for now.

The recent low lies at 0.9952 with the 78.6% retracement (of the move from the 2000 low to the 2008 peak) cutting in at 0.9889 and marking our near-term targets.

Above: EUR/USD daily chart.

Elsewhere the divergence of the weekly RSI on the USD/JPY charts suggests that 140 handle remains a bridge too far for now.

It is reflecting a loss of upside momentum and we would allow for some further consolidation/some slight slippage on this one.

Dips should find initial support around 134.75, the 4-month uptrend and 55-day ma at 133.40.

Above: USD/JPY daily chart.

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