The GBP/USD pair has formed a reverse Head and Shoulder pattern (a bullish pattern) on a 30 minute time frame. If this pattern does play out completely, it could easily push the price to the 1.5365 resistance level. The price is trading above the 50 day (shown in green) and the 100 day (shown in yellow) moving averages which shows that the bulls have taken the control. The pair is also respecting upward trend line which further strengthens the above argument. The RSI is in an overbought zone which calls for a caution and this could bring a pause or reverse the trend.
Asian markets began the week by adding losses on the back of a disappointing economic data from the Chinese government and HSBC. The Nikkei index was the worst performer among Asian indices which plunged nearly 3.72% in an overnight session. The index is firmly below the 14000 level and closed at 13,262. The Nikkei has plunged 3 times more than 400 points since May 23, and it closed in a negative territory in the Month of May after a gain of the previous nine months.
The EUR/USD pair has formed a reverse Head and Shoulder pattern (a bullish pattern) on a 30 minute time frame. If this pattern does play out completely it could easily push the price to the 1.3089 resistance level. Interestingly enough, at this level, the price will also complete the symmetrical triangle pattern shown by yellow rectangles.