A potential AB=CD pattern is forming on GBP/USD on the daily chart. The pattern is expected to complete around the price range between 1.5785 and 1.5767. The 127.2% retracement of the the BC leg is at 1.5767 and AB=BC projection is at 1.5785.
The EURJPY has made new lows and is now close to its key support area around 124.94 as traders are showing their disappointment with the Bank of Japan decision and lack of additional stimulus or programs.
As long as this level holds, the uptrend could be expected however a clear break under this level will indicate that another move down would likely be seen.
We would however not be aggressively bearish given the short-term oversold conditions and the proximity of key supports at 124.94.
EUR/USD tumble down on a decline in German PMI and is now close to its key support area around 1.3178.
The German PMI for manufacturing declined to 48.7 in June, disappointing expectations for a rise to 49.9 from a survey result of 49.4 in May.
As long as 1.3178 support level holds, the uptrend could be expected toward hourly resistance at 1.3326 (18/06/2013 low) however a clear break under this level will indicate that another move down to the next support around 1.3042.
