GBP/USD – another test of $1.2616 on the way?
The downtrend continues for GBP/USD, with a bounce from last week’s lows around $1.26 fizzling out around $1.2750. A push back below the weekly pivot at $1.2706 would signal that another test of $1.2616 is on its way.
As before, $1.2814 is the area that needs to be cleared before we can expect more sustained upside in this pair.
USD/JPY momentum indicators where reversals have begun
USD/JPY has run into the 100-day simple moving average (SMA) at ¥111.80, with momentum indicators, such as stochastics, now in the area where reversals have begun (see mid-March and mid-May).
A close back below ¥111.68 could well see a fresh downward move begin, targeting ¥110.11 and lower. A daily close above the 100-day SMA would be a bullish development, and potentially open the way back to ¥114.