GBP/USD – Hourly Chart
The GBP/USD pair once again faced rejection around 1.52-1.5220 levels and finished lower at 1.5156 levels. On the hourly chart, the pair has breached the double top formation with a neckline at 1.5154 levels, thereby opening doors for a target of 1.5080 levels. The pair has also breached the 23.6% retracement support at 1.51650. Currently the pair hovers around 1.5145 levels, with the hourly RSI, at 48.06, pointing to a further sell-off in the pair. Thus, the pair may decline, although the losses are likely to be capped around 1.5120 (38.2% retracement level). On the other hand, a fresh demand for Pounds can be seen above 1.5160 levels. In such a case, the immediate gains are likely to be capped around 1.5220 levels.
EUR/USD – Hourly Chart
The EUR/USD pair witnessed a failure of the inverted head and shoulder pattern see in the hourly chart as it declined below the neckline level at 1.1309. The pair ended at 1.1289 levels after having failed near 1.14 levels yesterday. At the moment, the pair trades in a falling channel on the hourly chart, while the hourly RSI is bearish at 40.00 levels. A further selling pressure towards 1.1240 levels can be anticipated due to the failure of the inverted head and shoulder pattern and the bearish hourly RSI. Moreover, losses could be extended if the breaches the falling channel to the downside. Meanwhile, a fresh demand for the Euros can be expected above 1.1309 levels. In such a case, the pair is likely to make another attempt 1.1350-1.1370 levels. However, given the bearish developments on the hourly chart, the pair is more likely to dip to 1.1240 levels before moving upwards.
USD/JPY – Hourly Chart
The USD/JPY pair finished lower at 117.46, after facing to sustain gains above the 5-DMA and the 10-DMA levels. The pair has a hard time today, as it faced rejection at 118.00 levels to trade below the 5-DMA and 10-DMA located at 117.85 and 117.95 levels. Moreover, the averages have formed a bearish crossover, indicating room for more downside in the pair. Both, the daily and the hourly RSI are bearish. Thus, the pair is more likely to test 117.18 levels today. The pair has also dipped below the 38.2% retracement located at 117.71 levels. The losses could be extended further if the pair manages to break the support at 117.18 levels. On the other hand, a break above 118.00 levels may see some buying interest.However, immediate gains are likely to be capped around 118.50-118.70 area.
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