The cable broke out of consolidation on Monday, 7th September 2020, this consolidation was in a rising wedge. Mondays breakout sold off and broke through 1.2980 and stopped on 1.2799/1.280 on Friday.
However, the pair is in a long-term downtrend, seen clearly on the weekly and monthly time frames. September has already engulfed August on the monthly time frame, which hints at a further weakness, and the measured objective of the wedge is 1,150 pips. This leads me to believe in more weaknesses for the cable. For that to happen, the sellers need to get a confirmed close below 1.2800 to expose 1.2620 followed by 1.2450.
Alternatively, if we get a buy signal from any of the key levels, that will mean higher levels for the pair, on the way up we have 1.2980 followed by 1.325 and 1.350.
GBPUSD daily time frame.
EURUSD consolidation continues as the upward sloping flag we are tracking remains very much intact. Wednesday bullish engulfing bar produced a retest of 1.1930. The pin bar at 1.1930 is typical of consolidation but is one to watch carefully. We may see the pair retest the channel top at 1.2010 or maybe not. A confirmed break out from the flag is worth waiting for, however, swing trading the channel is not such a bad idea.
Levels to watch on the way down are 1.170 and 1.605 (1.1605 is the top of the multiyear wedge we have been tracking for weeks now, we are yet to get a retest of that wedge top). On the way up, we have 1.209 and 1.235.
EURUSD daily time frame
GBPJPY is another pound pair on the breakout, also is GBPCAD. The pound is showing increasing weakness across its pairs. GBPJPY is no exception as it broke out of an ascending channel on Thursday and retested on Friday and pushed off the channel resistance 136.565.
Levels to watch on the way down include 134.295 and 130.680, alternatively, a close above the resistance will negate the breakout and expose 138.602, followed by 141.014.
GBPJPY daily time frame.
NZDUSD is another USD pair that could be gearing up for a pullback. Currently, the kiwi is in a rising wedge terminal pattern. Notice that the pair tested 0.66930 throughout the week if sellers can keep the pair below 0.66930, a break of 0.66292 becomes inevitable. A close below 0.66292/0.65878 will expose 0.6430 followed by 0.632 and 0.620.
A close above 0.66930 will expose the wedge top at 0.6804 for a possible to rebound to the bottom of the wedge.
NZDUSD daily time frame
EURJPY has been trending lower since 2017(check the weekly time for a clearer picture of trend) EURJPY is also in a rising narrowing wedge. Rising/ascending patterns always break to the lower side more than they break higher. The pair bounced off support 124.755 on Wednesday hence, we may see it reach for the wedge top around 127.740 if buyers break above 126.834
However, this being a rising wedge. I am more interested in shorting than am interested in buying so long as the pattern remains intact. If we get a confirmed break of the wedge support around 125.338, key support levels on the way down include 124.060, 122.630, 121.470, and 119.755.
EURJPY daily time frame.