GBP/USD breaks higher once more
Yesterday’s GBP/USD spike took the pair to a near month-long high, in a move that provided a continuation of the bullish reversal that has been forming in recent weeks. This bullish phase looks like a retracement of the wider move from that $1.3269 high. As such, it makes sense to look for $1.3080 and $1.3152 (61.8% and 76.4%) as targets for when this rally might come back under pressure.
Further upside looks likely, yet there is a threat that we could start to see the pair retrace yesterday’s sharp rally. A bullish outlook remains as long as we remain above $1.2909, with a move lower providing us with a potential bullish entry at Fibonacci support.
EUR/GBP trading lower, as wedge forms
EUR/GBP dropped into a new lower low yesterday, following a 76.4% retracement earlier in the week. We are now seeing a move higher from trendline support, indicating the creation of a falling wedge pattern. That is a bullish formation, which points towards an eventual bullish breakout.
However, until we see a move through £0.9227, a bearish outlook remains, with the 61.8% retracement at £0.9191 looking like an attractive area for shorts if we get up to the point.