GBP/USD rallies towards trendline resistance
GBP/USD has seen sharp gains in early trade today, with the price moving into a two-week high. However, with the price moving into trendline resistance, and with the stochastic indicator overbought, there is a good chance we could see a retracement from here.
That being said, we would need a break back below $1.3186 to negate the short-term uptrend, with the price still not reaching the upper bounds of the range in place for over a month. With that in mind, a short-term pullback could subsequently provide another leg higher. However, should we reach it, look out for this market to start its turn lower from around the $1.3310 region in respect of the wider range.
AUD/USD rallying back towards trendline resistance
AUD/USD is similarly gaining ground this morning, following on from a clear recent downtrend for the pair. Given the wider downtrend, there is a strong chance that we will see another leg lower before long.
Therefore, any further upside would be viewed as a selling opportunity, if the price does not break back above $0.7608. Watch out for the Fibonacci resistance as a potential area for the market to turn lower, with the 61.8% looking like an interesting area, given the confluence with trendline support.