Is the pound getting heavier? Looking at that falling channel on the 1-hour chart, it seems like the pound would have a tough time staying afloat. You see, GBP/USD just found resistance at the top of the channel and could be headed back to the bottom. Since the pair is making higher highs but stochastic showed lower highs, that bearish divergence signals that GBP/USD’s rally is over. With that, the pair could fall until the middle of the channel, around the psychological 1.5900 level. If sellers are much more aggressive, they could take the pair all the way to the bottom of the channel near 1.5800.
Aha! It looks like the pound isn’t any lighter against the yen either. Getting the dibs on Guppy in the 4-hour timeframe we see that buyers are having a hard time pushing the pair above 132.00. If resistance at the major psychological handle holds, we may just see a pair of double tops and the pair could tumble all the way down to 129.50. But be careful! Who knows, the bulls might have just taken a chill pill from their rally and are getting ready to push GBP/JPY back up to 133.00.
Whoa! Is that a pair of sexy double bottoms on EUR/JPY? Zoom out on the weekly time frame and check it out! Looking at the chart we see that before we start rooting for the euro, we may have to wait for the pair to trade past the neckline resistance at around 114.80, where it has previously found support. Be on your toes for a convincing break above the 115.00 because this may just be a sign that buyers are going to hustle the pair back up to 127.50. However, if resistance proves to be too hot for ‘em buyers to handle, EUR/JPY may just fall to 107.20.