The British Pound after a decline towards 1.2930 against the US Dollar started an upside move. The GBPUSD pair moved above 1.3000 handles and currently trading above the 100 hourly simple moving average.
The pair is now gaining pace and moving inside an ascending channel pattern with resistance at 1.3035 on the hourly chart.
A break above the channel resistance is very likely for a test of the 1.3050 resistance and the 61.8% Fib retracement level of the last decline from the 1.3125 high to 1.2933 low. The overall trend is positive for GBPUSD as long as the pair is above 1.3000 and the 100 hourly simple moving average.
The Aussie Dollar after trading as high as 0.7987 against the US Dollar started a correction. The AUDUSD pair traded towards 0.7880 where it found support.
A bullish trend line at 0.7885 and the 100 hourly simple moving average acted as a support area and prevented declines. On the upside, there is a connecting trend line at 0.7945 on the same chart.
Clearly, there is a breakout pattern forming as a contracting triangle with support at 0.7920. An initial resistance is around the 50% Fib retracement level of the last decline from the 0.7987 high to 0.7874 low. A break above the trend line resistance at 0.7930-40 may call for more gains in the near term.
The British Pound gained a lot of bullish momentum recently against the US Dollar and Euro. The EURGBP pair declined and settled below the 0.8830-0.8800 support area.
The pair looks set to extend losses in the near term below 0.8750. There is a short-term breakout pattern forming with resistance near 0.8765 on the hourly chart.
The pair is likely to remain capped by 0.8765 and 0.68780 in the near term. On the downside, a break and close below 0.8750-45 could set the tone for more declines towards the 0.8720 level. On the upside, resistances are near 0.8765, 0.8780 and 0.8800.