GBP/USD Fumbles, But Remains Above Important Support

I had hoped, so much, that we’d begin to see a break of the mini-range trading. It almost looked as if it would happen but then collapsed in what looks to be a recycling. The 4-hour Price Equilibrium Clouds – the fine line between bullish and bearish – were the culprits but there surely can’t be another day of this range trading… The Continental Europeans must have been drugged to the hilt considering there were really hardly any barriers to either side to the market. Today should see this range break. At the same time, GBP/USD which I had really looked for gains, fumbled and gave up to tumble even lower – although remained above important (but extreme) support.

This should be a day for the Europeans to make a stronger effort to break away from the current impasse by choosing to develop a gap from the 4-hour Clouds that are moving sideways. Well, GBP/USD is an exception but it wouldn’t take much to push it one way or the other…

Even the Aussie failed. Well, it was very much on the lines of the Europeans: lacklustre and lacking in any form of enthusiasm. It too, is grappling with a lateral move in its own 4-hour Cloud. I still feel the upside is the more likely direction but just wait for confirmation…

As for USD/JPY… arrgghh... what a mess. Fooled by a more than mini-minor correction in the final legs up to 110.58, the channel support broke and has seen losses. There should be more - but this is going to be a tough outlook. If there is any possible guidance it should come from EUR/JPY – that has also caused some whipsaws – so we’re going to have to watch the influence of EUR/USD in this mix. The cross has been a complete pain in the ass-ociation but I can’t help feel that a stronger break is needed and EUR/JPY doesn’t really have much space on the downside – while USD/JPY appears to be edging lower. So there’s quite a lot of onus on EURU/SD to drag the cross higher… if it can…