GBP/USD pulls back towards Fibonacci support
GBP/USD is easing lower, following on from yesterday’s strong rally for the pair. Set within the clear uptrend this week, this pullback looks like a short-term retracement before another leg higher.
Interestingly, this pair has seen Fibonacci retracements work perfectly given the Tuesday rally from the 61.8% and yesterday’s respect of the 38.2% pullback. Thus it is worth looking for support around the 1.4108 (38.2%), 1.4113 (50%) and 1.4094 (61.8%) levels.
It is also worth noting that we have a clear Elliott Wave count in play here, which means some will be looking for the next bounce to fall short of yesterday’s $1.4194 high. However, for now, the bullish view remains as we look for another bounce from Fibonacci levels.
USD/JPY turning lower within triangle
USD/JPY is seemingly turning lower, as the pair seeks to remain within a descending triangle formation that is in play. With the stochastic overbought and lower highs in play over the past two days, it seems likely that we will turn lower as people shift towards the yen ahead of the week’s big risk event.
In particular a closed hourly candle below ¥113.74 support would provide expectations of a return to the ¥113.20 region. Look out for the ascending trendline potential support too.
Support levels of note are ¥113.74 and ¥113.20. A break through ¥114.27 points towards a resumption of the recent uptrend with resistance levels of ¥114.55 the next levels of note.
USD/CAD in choppy downtrend
We are seeing a gradual move higher for USD/CAD this morning, with a move back into trendline and 50-hour simple moving average resistance.
Given that price typically fails to sustain price action above these levels, another move lower seems likely. The stochastic is also just moving into overbought territory, adding more to the bearish view.
As such, another move lower seems likeliest, with that view negated if we break and hourly close above C$1.3473.
Support levels of note are C$1.3386 and C$1.3371, with resistance levels at C$1.3473, C$1.3481 and C$1.3500.