GBP/USD unexpectedly beat first resistance at 1.4030/40 with shorts stopped as we trade sideways. However, as we wrote on Friday, I would only reverse in to a long above 1.4105. We topped exactly here but a break higher today targets 1.4135/40 and 1.4180/85 before the 1.4240/45 March high.
Failure to beat 1.4105 targets 1.4070 and first support at 1.4040/30. Below 1.4010 risks a retest of last week's low at 1.3963 before strong support at 1.3940/30. A bounce from here is expected, but longs need stops below 1.3890. A break lower is a sell signal targeting minor support at 1.3820/10.
GBP/JPY key to direction is strong resistance at 150.60/80. Shorts need stops above 151.20 this time!. A break higher is a buy signal targeting 151.40 and only minor resistance at 152.10/20 for some profit taking on longs perhaps, but shorts are definitely too risky.
Failure to beat 150.60/80 targets 150.15/10 then minor support at 149.75/65. Further losses meet better support at 149.40/30. Exit shorts and try longs with stops below 149.00. However the best support today is at 148.60/50 of course.