GBP/USD Bucked The Trend and Continued To Make Gains

The sharp dollar bullish reactions following the FOMC quickly subsided – actually, a little quicker than I had expected… That’s not to say I don’t expect further gains to be seen but this follow-through will be a little more difficult to judge being the tail end of the current leg higher which have a range of targets from the lower degree waves but none from the higher degree. Therefore, we’re going to have to attempt to fine-tune the targets as the move develops. Right at this point, the dollar is being supported by the 4-hour Price Equilibrium Clouds in both USD/CHF and EUR/USD so expect a reversal higher (dollar-wise) over the first half of the day.

However, GBP/USD bucked the trend and continued to make gains – something that pleased me as it continues to lead the way. However, that’s not to say it’ll be a direct rally. I do expect a correction over the first half of the day but should resume once the Scottish referendum result has been announced… I don’t normally interpret a fundamental outcome through my analysis but I can’t see any other result than the likelihood of a “No” vote… Let’s see… Maybe I’ll be upset …

Not much happened in the Aussie also – more some intermediate range trading and minor new low. I still think this should see another leg lower but with the possible risk of an initial correction. I can’t see it being a boomerang day today…

As for USD/JPY… cripes… As I’ve been writing the report the break above 108.95 has seen my mouth gawp open… With bullish momentum across all time frames… well, there is no doubt we’ll see higher. However, do take note of the key resistances in EUR/JPY because we have an impulsive rally but which requires a deep correction before too long… This has quite strong implications for both USD/JPY and EUR/JPY…

It should be an interesting day, maybe stretching into Monday. Take note of limits…