GBP/USD tumbles through support
The pair has had an interesting time of late, with the past two months seeing the pair swinging within a wide range of $1.4333-$1.4769. We are currently heading towards the lower end of this range, yet given the ability to break through Friday’s high, it remains likely we are going to see a resurgence.
As such, this move seems like a retracement of the rally seen earlier in the week, with the 76.4% Fibonacci level ($1.4428) of particular interest for potential longs. Crucially, we would need to see a close below $1.4333 to create a double top and subsequently bring a bearish outlook.
USD/JPY breaks through key support
The pair has continued the recent downtrend, with the pair selling through the crucial ¥106.43 support level this morning. We retain a bearish outlook for a move down to ¥105.55, in accordance with the wider long-term downtrend.
However, the ¥106.43 level could be important as a potential new resistance level and thus any retracement towards this level will be watched closely. Unless we see an hourly close above ¥106.80, it makes sense to continue selling on retracements.