FX levels to watch: GBP/USD, EUR/USD and AUD/USD

EUR/USD and GBP/USD still remain within a downtrend for now, yet with AUD/USD having broken higher, we are seeing it come back to respect Fibonacci support.

GBP/USD drop could point towards the next leg lower

GBP/USD fell below the $1.2794 support level yesterday, raising the chances of further downside for the pair.

The recent rebound always looked like a retracement, yet the size of that rebound is always going to be difficult to anticipate. However, with the failure to create higher lows, we have seen a potential answer to that question. With that in mind, the rally we are seeing this morning is likely to be a retracement of yesterday’s sell-off. Thus, unless we break above the $1.2883 mark, another turn lower looks likely before long.

EUR/USD turns lower from trendline resistance

EUR/USD has been selling off from trendline resistance this week, with a particularly deep rally coming close to the bullish breakout threshold of $1.15. However, for now we are caught between two trendlines, with the price rallying back towards the resistance once more.

A break through $1.15 would point towards a more bullish outlook coming into play. Until then, there is a good chance we will see the pair turn lower to continue the wider bearish picture.

AUD/USD retraces into Fibonacci support after recent breakout

AUD/USD is turning higher from the 76.4% retracement, following a recent breakout through $0.7315 resistance. That break negates the wider bearish outlook, pointing towards a potential period of upside.

With that in mind, the respect of the 76.4% retracement level at $0.7205 points towards a possible resumption of that bullish theme from here on in. As such, watch out for further gains, with a more bearish view coming in the event of a break below $0.7164.

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