GBP/USD downside expected
Yesterday’s selloff in GBP/USD looks likely to continue today, with price gradually grinding higher to set itself up for further downside.
The key signal for this next downside leg would be a move below $1.5030, which would then look towards support levels of $1.5000 and $1.4951.
Conversely, this bearish view would be negated should price break back above $1.5067.
USD/JPY hits H&S projection
USD/JPY has rallied heavily since breaking through both a head and shoulders neckline, along with the ¥121.18 swing high. The projection of that pattern was around ¥122.00, which has subsequently been hit.
However, for this rally to continue, we will need to see the pair break through ¥122.23 resistance, which would point towards resistance levels of ¥122.30, ¥122.50 and ¥123.00 as the next major levels of note.
Bear in mind that ¥122.30 was the level which held up price over the space of a month.
Given that we are at a notable resistance level, a move lower seems feasible, which would continue the lower highs on the longer term charts.
The reversal signal to look out for would be a closed hourly candle below ¥121.80 or for more confidence, a close below ¥121.60.
USD/CAD attempting triangle breakout
USD/CAD is attempting to break higher from a symmetrical triangle this morning, as the pair seeks to continue the strong uptrend we have seen over the past two months.
This breakout could provide us with a nice bit of directional volatility and thus it is worth watching out for.
The bullish signal would be a break through trendline resistance and closed hourly candle above C$1.3766, while a bearish breakout would come with a move through trendline support and closed hourly candle below C$1.3693.
Support levels of note are C$1.3693, C$1.3673 and C$1.3622. Resistance levels of note are C$1.3766, C$1.3761 and C$1.4000.