The currency pair is facing strong resistance at the moment, which it might turn out to be unable to break.
GBP/USD is currently trying to find support in the face of the monthly PP and 55-day SMA, but there is a high probability of the price falling even lower.
Although the Euro refused to decline for two days, in the end the bears managed to push the currency below the monthly S2 level.
This definitely has been one of the worst weeks for the pair in a while as it has lost almost 200 pips.
The pair started to attack the down-trend resistance line that has been intact since the beginning of March.
This currency pair approached the weekly R2 at 0.9460 earlier this week; however, at the moment it has dropped to trade slightly above the 0.94 mark.
EUR/JPY continues to trade between the monthly S2 at 136.46 and the weekly PP at 137.44 this week.
Although a breach of the resistance on Jun 30 represented by the 2009 high was considered to be a bullish sign, in the end the Sterling proved to be unable to sustain a rally.
For the time being the single European currency is reluctant to decline, even though it has just breached one of the key support lines, namely 1.35.
Not without some difficulties, but USD/JPY managed to reach the resistance at 101.83/73.
USD/CHF seems to be already taking a break in view of the coming weekend, as it is making no progress after setting foot above the resistance at 0.90.
The pair has plummeted below the cluster of support levels (monthly PP, 55 and 100-day SMAs), after struggling to do so for five straight trading days.
This week we have seen almost complete standstill in this currency pair.
It seems that the Aussie is starting to lose its allure; therefore, it has failed to surpass the weekly R2 at 0.9460 thus far.
Since the Euro received a bullish impetus from the monthly S2 and weekly S1 at 136.46/42 it is challenging the major level at 137.
Since USD/CHF closed above 0.90, it is already unlikely that the price is going to re-test the 2014 lows at 0.87.
Slowly but surely the U.S. Dollar is outperforming the Yen, as it has received a bullish impetus after a test of 101.
Apparently, GBP/USD is not willing to use the opportunity to rebound from the 2009 high.
The sell-off might not have been as strong as expected after a breach of the support at 1.35, but the risks are still considered to be heavily skewed to the downside.
The pair's movements are still mostly determined by its bears that are pushing EUR/JPY lower, as of today the monthly S2 at 136.46 was reached.
The Aussie has not looked back since it received a bullish impetus from the monthly PP at 0.9369 yesterday.
USD/CAD is entering a very narrow range and a break-out is expected soon.
The New Zealand Dollar is still unable neither to breach the 0.87 mark nor the monthly PP/55 and 100-day SMAs at 0.8654/42.
The Reserve Bank of New Zealand is assumed to raise the interest rates by 0.25% following a last month's hike from 3% to 3.25%. NZD/USD reached 0.8684, the highest level during the Asian session and then started to consolidate at 0.8688. The probable support may be found at 0.8650, July's 17 low, with the resistance at 0.8720, July's 21 high.