GBP/USD looks set for further gains
Despite weakness at the open, GBP/USD is back in the ascendancy as it seeks out the early high of $1.2738. The pair has enjoyed a particularly strong start to December, yet price is now moving closer to the crucial $1.2796 resistance level (July 2016 low). That represents a significant challenge to the recent rally.
As such, a bullish outlook remains, with an hourly close above $1.2738 providing a signal that another leg higher could be upon us. However, watch out for notable resistance at $1.2796. This bullish outlook would be negated with an hourly close below $1.2656.
USD/JPY breaking higher from wedge formation
USD/JPY is seemingly in the process of breaking higher from a recent period of weakness, with price breaking through trendline resistance. The key here is the ability to post an hourly close above ¥114.21, which would provide a strong bullish signal.
Given the wider uptrend over recent weeks, this bullish sentiment would coincide with a wider picture. However, a break below ¥113.34 would mark a continuation of recent weakness.