BULLS ON PARADE!!!  Look at those bounces off the 50 & 100 day SMA's on the daily chart.  Price action wasn’t able to come down and touch 1.5750, hence the break out.   The key 1.5817 level was clearly broken establishing it as new support if tested.  Price retraced to 1.5875 during the intra-day session and had a nice bounce from there offering bulls another opportunity.   Now that we see a daily close above 1.5900 – What’s next?   It's possible to say new territory where first resistance should be 1.6300 in due time.   Ask yourself this question: Would you be buying U.S. Dollars right now?

We all know that the U.S. Dollar weakened across the board in today’s U.S. session.   The pound jumped 200 pips in the rally and then fell just over 100??? There are a lot of GBP bears out there selling into strength…so beware!   Price action broke through our intra-day resistance of 1.9850 and the fell right to it, leaving a big shadow on the daily candle.   We turned our attention over to GBP/JPY and saw nothing but NOISE!   This confirmed the fact that; WE DON’T LIKE TRADING THIS PAIR RIGHT NOW!   I’m sorry but there is no clear direction we can give today here.   To us, the no-trade zone is between 2.0000 and 1.9650.   Patience pays.  

My personal favorite J .   For those of you that have been reading this blog, you know how we feel about this pair.   The move from 108.56 to 105.00 produced a retrace to the 76.4 @ 107.70 then today a bounce from the 23.6 @ 105.80.   We have a daily close that is just outside the channel too.   Maybe we can expect a little more consolidation before 105 is removed?   The upside risk is above the bold white trendline, which puts hard resistance @ the 107.00 zone.   If there is a breakdown of 105 then a possible target price could be 103.65 where there is even more congestion.   It is comforting to see price touch the bottom of the channel after breaking it and finding resistance there too.   The future looks…..well, not good for the USD.  Sorry for the messy chart.