GBP/USD turns lower following retracement
GBP/USD is selling off sharply following on from a deep 76.4% retracement overnight. It is clear the pair has moved back into a bearish mode, which coincides with the wider, longer-term trend.
With that in mind, further downside seems likely, where the $1.2570 support level comes into view as a near-term target. As long as price does not break through $1.2683, a bearish outlook is in place.
NZD/USD rally looks set to continue
NZD/USD saw a sharp rally yesterday, with price managing to break through a trendline which dates back to January. The fact that we have seen price pull back and respect this line as new found support provides a bullish signal which could yet drive further gains. This rally forms a wider retracement of a downturn from $0.7403, with the recent rally through the 50% pullback meaning we are now looking towards the 61.8% ($0.7238) and 76.4% ($0.7301) levels for the bearish view to come back into play.
The 76.4% pullback has popped up a number of times over recent months and another rally into that level could be interesting. In either case, a short-term bullish outlook is in play, with the ability to remain above $0.7193 key to further gains.