GBP/USD retracing heavily
GBP/USD is retracing further this morning, in a continuation of the move we have seen yesterday evening. The creation of a new lower high and low is a warning sign, yet the support level of $1.5234 looks more important as a reversal signal than this shorter-term level. Thus a close below $1.5234 would be needed to portray a possible bearish trend coming into play. Until that happens, this looks like simply a retracement of the recent move higher, with $1.5265 and $1.5241 levels representing key support in the near term. Until the price closes below $1.5234, we remain bullish, with key resistance levels at $1.53, $1.533 and $1.5359.
Bullish AUD/USD channel breakout
The AUD/USD pair has seen a clear descending channel breakout towards the upside this week, with the close above $0.7159 a key bullish signal. We have seen this rally retrace moderately overnight, with support provided by the 200-period SMA (four hour). As such, another leg higher seems likely for today, which would subsequently look towards $0.7224 and $0.7271 as the next resistance levels. Conversely, a close below $0.7152 would bring a more bearish view, where $0.7140 and $0.7100 would be the next support levels to watch.
USD/JPY selling off
The USD/JPY has taken a turn for the worst, with the price breaking below the key ¥123.20 support level and subsequently selling off heavily. The retracement higher overnight seems to have found the 200-hour SMA and ¥123.00 resistance zone difficult to overcome, and subsequently we are looking at another possible leg lower today. A close below yesterday’s low of ¥122.62 would signal the start of another move lower, where the next major support level is at ¥122.30. Conversely, a close above ¥123.05 could point towards this ascending channel continuing to make gains in a bid to regain ¥123.20.