A Bearish Trend Developing For GBP/USD?

• 1 Jul 2021

USD/JPY

The USDJPY pair has climbed back above the 110.69 resistance level, as the pair continues to oscillate higher and the rally gathers support. The ascending trendline will continue to contain price action going forward. Momentum indicators have upward trajectories.

GBP/USD

GBPUSD is testing the 1.380 support level which represents the first level in a price recovery after the pandemic. A break would cement the trend reversal and signify a longer-term bearish outlook. Momentum indicators are approaching oversold conditions.

EURUSD

The Eurodollar has pulled back to break the ascending trendline and is now testing the 1.184 price line. On previous occasions, buyers have returned at this price level. However, bearish sentiment appears to be climbing in Euro pairs.  Momentum indicators are testing oversold conditions.

USDCAD

The USDCAD has broken the descending trendline to the upside which may be the first signal of longer-term bullish sentiment. A target exists at the 1.245 price level where previously price action was rejected. Momentum indicators have upward trajectories.

XAUUSD

XAUUSD has broken the ascending trendline and has been contained at the 1761 support level, where buyers are making a return. The trendline may now act as a resistance level for the metal. Momentum indicators have flattened in bearish territory.

JP225

The JP225 index is once again, approaching the 28532 support level and despite very strong bearish momentum on previous occasions, a break has not materialised. Longer-term bearish sentiment is being established therefore we may anticipate that a break is imminent. Momentum indicators have turned bearish