GBP/USD awaiting UK data this week
The drop through $1.2706 is the bearish development that we had been expecting. While UK data this week could rescue GBP/USD, the next area of support to watch would be the $1.2616 area.
A drop below here would raise the prospect of a move down towards $1.24 in the longer term. Bulls need a move back above $1.2775 to indicate that they have managed to wrest back control.
USD/JPY awaiting Fed meeting
There has been a notable recovery in USD/JPY over the past few days, with the possibility that a further rally will recover ¥110.56, the 200-day simple moving average (SMA). Above this, the late May high at ¥111.78 comes into play.
Much will likely depend on the Federal Reserve (Fed) meeting, but those looking for an extension of the 2017 downtrend in USD/JPY will want to see ¥109.50 lost as a prelude to a move back to ¥108.