Check out what I spotted on the GBPUSD 4-hour chart… A nice-looking head and shoulders formation! This suggests that the pair is tired of climbing uphill and may be ready to roll downwards from now on. The pair did break below the neckline of the head and shoulders last week but, for some reason, sellers were unable to push the pair much lower. It was most likely because the psychological 1.6300 handle served as a strong support level from which the pair rebounded. Right now, the pair is hovering slightly above the neckline, with the stochastics aiming for the oversold area. If the pair breaks below the neckline and the 1.6300 level, it could be headed on a pretty strong downtrend.
Now let’s get the latest scoop on the NZDUSD pair. The descending trend line on the 1-hour chart seems to be holding up really well, even with that teeny tiny false break last week. You see, the pair managed to climb slightly above the trend line but soon dropped down – and I mean way down! It came close to the 0.7000 mark before pulling out of the dive. It moved close to the trend line yesterday but reversed upon reaching the 61.8% Fibonacci retracement level. The pair looks poised to retest the falling trend line yet again but, if it proves to be unbreakable, the pair could tumble down and find support around the psychological 0.7000 level once more. On the other hand, if the pair pierces above the trend line, it could reverse upon hitting the previous resistance at the 0.7330 area.
The EURUSD pair has moved past above the 1.5000 score yet again. After reaching a high of 1.5085 in yesterday’s price action, the pair corrected back to its 38.2% Fibonacci level. The 1.5000 mark, which used to be a resistance, can now act as a support. With conditions far from being overbought, the fiber still has juice to move up. Though, yesterday’s high can also play as a resistance. If it is able break above it, then touching its yearly high is a possibility. On the flip side, it can fall down to its 50% fib if the 1.5000 support does not hold.