GBP/USD triangle sees likely move higher for today’s session
GBP/USD has been trading within a descending triangle over the past week or so and largely this is expected to continue. The move higher from support around 1.5676 overnight has given way to a round of buying so far. This looks likely to continue until price engages with the upper trendline of the formation around 1.574. The descending triangle is, by its nature, a bearish pattern and thus I am looking for a breakout to the downside when it occurs.
USD/JPY finds support and looks to move higher
The selloff in USD/JPY that took place throughout June is likely to be over in my mind, with price finally reaching the initial breakout point that instigated a substantial amount of upside volatility back on 26 May. With price having bounced higher from that 122.03 support level, the creation of a hammer following Monday’s doji points to a possible market bottom.
The stochastic has been trying to move lower again recently, but I believe this will fall short of the lows seen last week, thus meaning we would see a bullish failure swing. Given that we have been trading in a falling wedge within an uptrend, this is also a bullish signal and leads me to believe that the buyers would come back in soon enough.
As such, I am bullish for a move back to 123.20 and 123.6 as long as price remains above 122.03. From there, it would be a case of awaiting the break higher from this wedge, which I believe is only a matter of time.
NZD/USD resistance holds up
The consistent selloff in NZD/USD over the past two months has provided a great environment for trading with the trend. Yesterday’s bounce higher came following a sharp selloff which is likely to resume today. Thus I am bearish as long as price remains below 0.6815, with a return to 0.6748 the first port of call.