GBP/USD looks set for next leg lower
GBP/USD has been descending sharply since last week’s trendline break. Crucially we have seen price fall back to the $1.2302 mark, representing the mid-November low. A break below there would provide us with a strong bearish signal for the medium-term.
However, for now we have a short-term downtrend in play, which points towards the likely break back to and through the $1.2302 mark. That being said, given the importance of that level, it perhaps makes more sense to await the break and ride the trend from there. A bearish view remains in place unless we see an hourly close above $1.2510.
USD/JPY back to trendline support
USD/JPY is consolidating following another bout of strong gains last week. This morning has seen price come into an ascending trendline of support which originates from the November low of ¥101.22.
Clearly given the inability to break to a new high yesterday, there is a degree of hesitancy to this trend. However, until we see price break both trendline and the key ¥1116.21 support level, the bias remains to the upside.