GBP/USD turns lower, in threat to further upside
GBP/USD has been trading in a broadening formation over the past fortnight. Yet despite rallying from trendline support, we are seeing the pair move lower without having set a new higher high. This threatens to move the pair back towards the bottom end of the pattern once again, with an hourly close below $1.3109 providing a bearish short-term view.
Ultimately, we will need to see a break below $1.3030 to point towards a move out of this recent consolidation. However, for the short term, the ability to move back below $1.3109 would be very telling.
USD/JPY turning towards key support level
USD/JPY is selling off once again this morning, with the price having bounced from trendline support yesterday. Crucially, with the price having rallied into a major long-term resistance zone at ¥114.37-¥114.49, a break below the ¥113.53 level could bring about a strong move lower for the pair.
We would need a move back below ¥112.95 to truly negate this two-month uptrend, yet for the near term it is the ability or inability to break below ¥113.64 that will provide us with a directional bias.