GBP/USD rocked by parliament news, while EUR/USD and USD/JPY remain quiet

Reports of parliamentary manoeuvring have sparked volatility in GBP/USD, making up for a quiet session in EUR/USD and USD/JPY.

EUR/USD unable to rally

EUR/USD continued to retrace from its high at the beginning of the week, but also remains above $1.106 and the support zone that has held throughout August.

A short-term bounce today will challenge yesterday’s, around $1.1115. If this continues to hold then a more bearish picture may emerge. A move through this level would then open the way to $1.116 and the high from Monday. Further declines require a daily close below $1.106, which would put a much more bearish spin on the outlook.

GBP/USD volatile on parliament news

GBP/USD’s steady gains continue, as the price created another higher low and higher high in yesterday’s session.

This rally has been impressive, but it puts only a small dent in the losses of the past few months. On the daily chart, a turn back below $1.22 could well confirm that a lower high is in place. Any bounce from around $1.222 could provide another buying opportunity.

USD/JPY stuck below resistance

USD/JPY has failed to hold modest gains, with a descending triangle forming over the past few days.

A break above ¥106 would end this formation on the hourly chart, while further declines will test vital support around ¥105.

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