FX levels to watch: EUR/GBP, GBP/USD and AUD/USD

GBP/USD and AUD/USD look set for a further downside, while EUR/GBP approaches trendline support.

EUR/GBP drifting lower within ascending channel

EUR/GBP is starting to ebb lower as we move back into trendline support, with the pair looking like it is in retracement mode once more.

With that ascending trendline coming into view, it is likely that this will be a short-term move lower, before we push upwards once again. As such, it makes sense to buy into a further downside, with a break below £0.8797 required to negate the recent uptrend.

GBP/USD falling back towards crucial support level

GBP/USD is falling once more, with the pair moving closer to the crucial $1.2922 support level. The falling wedge seen throughout the past week is pointing towards a potential bullish break at some point.

However, the ability to break below $1.2922 is the real signal for the medium term as this would complete a wider double top formation. As such, watch for a break below $1.2922 as a bearish wider signal, upon which we are likely to see that upward wedge break and move into a retracement phase.

AUD/USD looking set for further downside

AUD/USD has been rebounding overnight, following on from another intraday fall.

With the current candle looking to complete a bearish and engulfing candlestick formation, there is a good chance we will see the pair turn lower from here. Whether or not this marks the top for this rally, a bearish outlook is in place unless we break above $0.7160.

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