GBP/USD breaks key support level
GBP/USD managed to break below the notable $1.2811 support level yesterday, pointing towards a continuation of the recent weakness. Over the short term, we have a clear descending channel, with a break above $1.2807 required to point towards a bounce into the $1.2860 region.
Until then, we could see further short-term downside to come.
NZD/USD breakdown looks likely to persist
NZD/USD has been selling off sharply since breaking lower from an ascending triangle formation. The initial bearish signal of a break below $0.7305 was solidified by a move below $0.7276, giving way to rapid devaluation of the pair. Crucially while we have seen a move back below the notable $0.7223 support level, it is the $0.7202 mark which has the biggest implications. That level marks the neckline of a two-month head and shoulders formation.
As such, a continuation of the price action below $0.7202 points towards a strong move lower for this pair. Watch out for follow through from this level to point towards a period of downside for NZD/USD. If that doesn’t occur, there is a chance of a rebound given the importance of this level.