GBP/USD breaks key support
The GBP/USD resurgence appears to be over for now, with the pair selling off heavily throughout Friday and subsequently this morning. The key here is the break below $1.517 and $1.5155. Given that the price has now broken below those levels, the pair looks like it will move back towards the bottom of the three-month falling wedge. The next major support level is $1.5107 followed by $1.5026. This bearish view holds unless the price closes above $1.5178.
The EUR/GBP downtrend remains well intact, and given the downtrend coming into this sideways price action, the resolution seems highly likely to be towards the downside. This current four-day range is trading within the £0.7025-£0.6982 boundaries and thus a close above or below these levels could act as a signal that the next move is imminent. However, given that we are in this downtrend, any upside breakout would also need to close above £0.7038 resistance. However, a close below £0.6982 would subsequently look towards the major £0.6950 and £0.6936 support zone (July and August lows).
AUD/USD drops out of uptrend
The AUD/USD uptrend has been well and truly undermined, with the price breaking below the $0.7183 support overnight. However, we have seen the price bounce from the crucial $0.7159 support level, with a long lower shadow. On the upside, the $0.7183 level is now providing resistance. Thus for any further downside, we would need to see a break and close through either of these levels. A close above $0.7183 would point towards $0.72 and $0.7214 as the next resistance levels. However, a close below $0.7159 would look towards $0.7141 as the next support level.