GBP/USD in bullish wedge break
Yesterday’s early break lower from this wedge pattern proved to be a fake out, with price swiftly recovering and breaking through the crucial $1.4286 level. This has provided us with the bullish signal we were looking for.
Subsequently, this morning’s pullback looks like a retracement before another leg higher for the pair. Support levels that could provide the next bounce for the pair are $1.4310 and $1.4286. Should we see this pair turn higher once more, we would be looking at initial resistance levels of $1.4363, $1.4400, $1.4445 and $1.4476.
Awaiting USD/JPY triangle breakout
Yesterday morning saw a nice bounce for USD/JPY, following what looked like a retracement for the pair. However, the failure to retake the ¥118.86 level means we are now starting to see price narrow into a symmetrical triangle pattern, which has once more provided support this hour.
With that in mind, we are simply awaiting a break through trendline resistance and an hourly close above or below the first swing high/low on the way out. Thus a closed hourly candle above 118.62 would provide a bullish view, with ¥118.65, ¥118.86 and ¥119.50 the next major resistance points.
Alternately, a closed candle below ¥117.65 would provide a bearish view with ¥117.47, ¥116.97 and ¥116.51 the key support levels to the downside.
AUD/USD channel break brings us back to resistance
Yesterday saw AUD/USD break through channel trendline resistance and crucially through $0.6968 which was tested as subsequent support. However, this rally has now come into $0.7044 resistance, which is the test for today.
A closed hourly candle above this level would provide a continued bullish outlook, bringing $0.7069, $0.7077 and $0.7097 into play. Alternately, an hourly close below $0.7006 would bring a more bearish short-term view, with $0.6968 $0.6938 and $0.6918 the next key support levels.