GBPUSD remains in downward trend from 1.6741 and the rebound from 1.5770 is treated as consolidation of downtrend. Range trading between 1.5770 and 1.6150 is expected in a couple of days. As long as 1.6150 resistance holds, we’d expect downtrend to resume and further fall to 1.5600 zone is still possible after consolidation. Only rise above 1.6150 will suggest that a short term cycle bottom has been formed at 1.5770 level on 4-hour chart, and the downtrend from 1.6741 has completed.
USDJPY formed a short term cycle bottom at 88.24 level on 4-hour chart. Range trading between 88.24 and 90.60 is expected in a couple of days. However, the price action from 88.24 would possible be consolidation of downtrend. As long as 90.60 resistance holds, we’d expect downtrend to resume and deeper decline to test 87.12 (Jan 21 low) long term critical support is still possible after consolidation. However, a break above 90.60 resistance will indicate that downtrend from 92.53 has completed, then further rise could be seen to 91.00 or even higher.
EURUSD remains in downward trend from 1.4843 and the fall extends further to as low as 1.4527 level. Deeper decline is still in favor later today and target would be at 1.4500 zone. Near term resistance is at 1.4645, as long as this level holds, downtrend will continue. Key resistance is located at 1.4724, above this level will indicate that a short term cycle bottom has been formed, then rebound towards 1.4843 could be seen to follow.