Hold on to your hats, fellas! GBP/USD could be revving up for a strong move after consolidating at the top of its daily range. But which way will it go? Ahh, that is the question. Stochastic seems to be crawling out of the overbought zone, suggesting that pound bears could pounce and push the pair all the way down to support at 1.5350. However, there’s another big roadblock at 1.6000. If this level refuses to give way, the pair might have no choice but to break above the top of the range.
Is the party over for the euro bulls? Judging from the way EUR/USD is stalling at the 61.8% Fibonacci retracement level, it does look like the pair’s rally is about to end. You see, the 61.8% Fib is closely in line with the broken support around 1.4375, which could act as resistance now. Then again, euro bulls still have a fighting chance since stochastic hasn’t reached the overbought area yet. They could even push the pair back to its recent highs around 1.4500.
Last but not least, let’s check how USD/JPY is holding up. The pair is still stuck inside that descending channel on the hourly chart, confirming that the downtrend is still intact for now. USD/JPY just pulled up to the top of the channel, which is in line with the 38.2% Fibonacci retracement level. It could be headed for the bottom of the channel again but stochastic seems to suggest otherwise. If buyers persist, we might just see USD/JPY break out of the channel!