GBP/USD breaking higher once more
GBP/USD is attempting to break higher from an ascending triangle formation this morning, in a continuation of the strength we have seen over the past week. However, with the major $1.4770 resistance level in sight (May high), there is good reason to believe that any upside could hit the buffers around that area (if only temporarily).
With that in mind, a bullish view remains in play, yet the reaction to $1.4769 would be crucial to the short-term fortunes of the pair. Alternately, a closed hourly candle below $1.4693 would be a warning sign that we could be turning lower for a deeper retracement.
USD/JPY falls from Fibonacci resistance
USD/JPY fell sharply overnight, following resistance at the 76.4% retracement yesterday. Overall we saw a 76.4% pullback, set within a wider 76.4% pullback. We are seeing a rally from a higher low this morning, bringing the potential for a symmetrical triangle formation.
This points towards both trendline and 76.4% resistance (¥110.24) as a possible area for the pair to turn lower once more. The medium-term view remains bearish, yet some will want to await a triangle break to confirm direction. An hourly close below ¥109.41 would look bearish, for a move down to ¥109.11 and ¥108.23.
Conversely, an hourly close above ¥110.45 would look bullish, with ¥110.60 the next resistance level of note.