GBP/USD break marks notable shift
GBP/USD has enjoyed an incredible week, thanks in no small part to a hawkish shift from the Bank of England (BoE). This has brought price through the key $1.2978 resistance level, thus ruling out the possibility that the rally was simply a retracement.
As such, it looks as though we could see another leg higher for this market through the next resistance level of $1.3048. However, for now, the difficulty is in finding how to create a trade within such a straight line market. Given the lack of recent swing lows, it makes sense to await a break back through $1.3030 to then look for longs, utilising the most recent swing low for stops.
AUD/USD rallies into trendline resistance
AUD/USD has broken higher following a 76.4% retracement, with the price pushing into a key long-term descending trendline. Given the respect of that trendline, there is a chance of a pullback from here.
However, we would need to see a break below $0.7654 to provide confidence that such a move will be a stronger retracement of the wider rally from $0.7577. Therefore, there is a case for longs around the 76.4% retracement level of $0.7667.