EUR/USD, GBP/USD, and USD/JPY at risk after recent gains
EUR/USD and GBP/USD show signs of potential weakness after recent recovery attempts. Meanwhile, USD/JPY is also at risk following a rise into trendline resistance.
EUR/USD struggling to regain lost ground
EUR/USD has been attempting to regain lost ground over the course of this week, with the pair grinding higher since the Monday's lows.
Nonetheless, that rally appears to be struggling to gain momentum. For now, we are yet to see a breakdown in the price, but there is a good chance we will see one before long. A move below $1.1911 would bring that bearish short-term picture into play. Until then, the pair looks likely to continue its gradual grind higher.
GBP/USD weakens after dovish BoE stance
GBP/USD has been losing ground after the Bank of England (BoE) provided a relatively dovish assessment at yesterdays monetary policy meeting.
That difference between Federal Reserve (Fed) and BoE thinking could drive further downside, with a break below the $1.3889 support level bringing the first tentative bearish signal after a period of upside.
USD/JPY weakening around trendline resistance
USD/JPY has managed to rally well from the trendline support that has underpinned the price action over the past two-months. However, we are now back into more overbought levels given the rise into trendline resistance.
That signals the potential for a short-term move lower to continue the pattern. With the price starting to fade, there is a good chance we do see a period of downside from here, with a break below ¥110.66 signalling the beginning of that short-term pullback. Alternatively, a break up through the recent ¥111.11 peak would point towards a potential bullish breakout from this ascending channel.
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