Will GPB/USD Make A New Corrective High?

Further losses in the Dollar, excepting GBP/USD. I have taken a longer look at both EUR/USD and USD/CHF. I found an alternative outcome in the latter that provides a little more flexibility when considering EUR/USD. I had been looking at the losses in USD/CHF as being incompatible with EUR/USD in terms of the alternative structure I have been proposing. The adjustment suggests that both pairs can renew Dollar gains – even if the Dollar slips lower again.

The more sluggish development seen yesterday has allowed the 4-hour Price Equilibrium Clouds to support EUR/USD but is still someway above USD/CHF. To cover GBP/USD also, well, price is oscillating around the 4-hour Cloud, obviously demonstrating consolidation. Otherwise, momentum is not really providing any significant indications. The more challenging issue is the rather complicated structural development. At this point I tend to favour some minor new Dollar lows today but then pulling back. I’d also like GBP/USD to make a minor new corrective high but this is rather vague at the moment.

Even AUD/USD is a bit mixed, supported by the hourly Price Equilibrium Cloud, but the 4-hour Cloud still some way below. It tends to suggest a minor new high but may not be sustainable on the first attempt. This tends to keep it in play for the upside.

USD/JPY extended losses to 3 points above a retracement support. It is currently being herded by the declining 4-hour Price Equilibrium Cloud, but threatening to break above the hourly Cloud. It tends to suggest a recovery at least but will need confirmation and that’s a bit higher up so we’ll have to be patient. As for EUR/JPY, well much depends on the two constituent parts and given the uncertainty over both I’d much rather wait until one or the other – or both – see a significant break.

Thus, the same cautious approach will still be prudent, taking profits when seen…