After achieving the upper limit of an ascending channel earlier this month, EUR/USD has been showing a retracement. Weekly indicator is close to a resistance which suggests ongoing rebound since December seems to be running out of steam and upside is likely to remain capped. Currently the pair is close to January highs of 1.10/1.0950 which also corresponds with the 61.8% retracement from mid-January lows and the lower limit of aforementioned channel within which the recovery has evolved. More importantly this is the 20 week EMA and the weekly descending trend. With daily RSI breaching a support line, continuation in correction can't be ruled out. A violation of 1.10/1.0950 will confirm a retest of late January lows at 1.08. 1.1150 will be an immediate resistance.
GBP/USD hit and rejected the multiyear channel limit near 1.46 and is now probing January lows. It is approaching towards projection for the c wave at 1.3950. It has confirmed a short term H&S which suggests possibility of further down move. Weekly stochastic is still above a graphical floor however a move above 1.46 will be needed for sustainable rebound. 2009 lows at 1.36/1.35 is next significant support zone.
