Sterling has found new bullish momentum, while the euro is increasingly rangebound in advance of the European Central Bank meeting on Thursday.

US dollar and Japanese yen notes
Source: Bloomberg

GBP/USD moves higher

The turnaround yesterday at the $1.50 level has seen the pair break higher, pushing on towards the $1.5115 resistance level. A break through here heads towards $1.5160 and then the 50-day SMA at $1.5250. A turn lower would head towards the $1.5040 level, before testing support around $1.50. However, with daily stochastics turning upwards as well, it looks like the buyers are back in charge here. 

EUR/USD still below $1.0590

The pair is holding above the lows of the month around $1.0560, but for the time being it is still trapped below $1.0590. With the ECB meeting looming we may see this replicated for the next two sessions, with a continued target around $1.0630 for any bullish moves, and a break below the $1.0560 area targeting the March low at $1.0450.

AUD/USD finds new impetus

It seems that this pair has discovered fresh upward momentum, although it still needs to clear the 25 November high around $0.7283. If it is able to close above here then the next target becomes $0.7344, towards the highs of October. A reversal should find support around $0.7230 and then down at $0.7180. 

USD/JPY could target ¥124.13

As long as ¥122.40 continues to hold then the buyers seem to be in control, even if the pair is falling back today. The real challenge will be around ¥123.50, where the gains for the month have petered out. A move through here targets ¥124.13. 

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