EURGBP is making a perfect reversal lower from our resistance area, marked with yellow box. It was a textbook bearish reaction which is looking very strong based on personality, so it's probably an impulse that is headed beneath 0.8468 low. Broken channel also confirms a completion of a corrective wave up at 0.8634.

EURGBP, 1H

EUR/USD

Current level - 10779

Yesterday's pullback to 1.0740 support zone was corrective and the outlook here remains bullish, for a rise towards 1.0870 area. 

Profit-taking affects gold curbing silver and platinum

USD/JPY

Current level - 112.82

The bias is negative after yesterday's failure below 114.00 resistance, for a slide towards 111.40 area. Crucial on the upside is still 114.00.

GBP/USD

Current level - 1.2662

The uptrend is intact, heading towards 1.2770 resistance area. Crucial on the downside is 1.2608 low.

'With cost pressures increasingly feeding though to higher selling prices at factories, it looks inevitable that consumer price inflation will rise further in coming months'. -Rob Dobson, IHS Markit

British manufacturing activity fell during the first month of 2017, as the weak British Pound pushed the prices of imports sharply higher, a private survey revealed on Tuesday. Markit/CIPS said its Purchasing Managers' Index dropped to 55.9 points in January after hitting its two-and-a-half year high of 56.1 in December. However, the figure came out in line with market analysts' expectations and remained above the 50-point level separating expansion from contraction for the sixth straight month. Data showed the weaker Sterling boosted new export orders but also drove acceleration of manufacturers' input cost inflation. However, analysts suggest that the positive effects of the weak Sterling on British exports could actually come to an end in the upcoming months. Back in January, factory prices reached their highest level since 1992, when the first Markit PMI survey for the UK manufacturing sector was published. Last month, consumer price inflation hit its two-and-a-half year high of 1.6%, remaining just 0.4% below the Bank of England's inflationary target. Wednesday's survey suggests that the manufacturing sector is likely to make a positive contribution to the country's economic growth in the first quarter of 2017. After the release, the Pound touched its six-day high of 1.2614 against the US Dollar.

'The PMI, New Orders, and Production Indexes all registered their highest levels since November of 2014, and comments from the panel are generally positive regarding demand levels and business conditions'. -Bradley Holcomb, ISM

US private companies created far more jobs than expected in January, data published on Wednesday showed. The ADP National Employment Report, a jobs survey released two days before the official Bureau of Labor Statistics government report, revealed that the US private sector saw an increase of 246,000 jobs last month, surpassing markedly analysts' expectations for 165,000. Meanwhile, the December figure of 153,000 was revised slightly down to 151,000. Analysts widely expect the NFP report to show on Friday a 170,000 jobs gain for January, while the unemployment rate is forecast to remain unchanged at 4.7%. Separately, the Institute of Supply Management reported its Purchasing Managers' Index advanced to 56.0 in January, up from the preceding month's reading of 54.5 and surpassing analysts' expectations for 55.0 points. Any reading above the 50 point level indicates expansion in the manufacturing sector. Furthermore, the New Orders Index and Employment Index advanced to 60.4 and 56.1 in the reported month, respectively. Meanwhile, the Price Paid Index rose to 69.0 for the eleventh consecutive month in January, compared with 65.5 previously. The number slightly topped economists' forecasts for an increase to 66.0.

'A record trade surplus shows that the surge in commodity prices is boosting nominal GDP. The most recent increases in the volume of exports implies that real GDP in the fourth quarter of last year at least may prove to be a bit stronger than we had thought'. -Paul Dales, Capital Economics

The number of Australian building approvals dropped in December after rising markedly in the preceding month, official data showed on Thursday. The Australian Bureau of Statistics reported building approvals fell 1.2% on a monthly basis in December, following November's upwardly revised jump of 7.5%. Nonetheless, the December figure was better than analysts' expectations of a 1.7% drop. On an annual basis, Australian building approvals decreased 11.4%. House building permits declined 1.6% month-over-month, whereas other dwelling approvals climbed 0.9%. The Australian construction sector is beginning to fade. However, so far it has experienced a rather slow decline in activity. In 2017, the construction sector is likely to see a rise of 212,000 new dwellings, according to the latest forecasts released by Commonwealth Bank of Australia. Meanwhile, the average house price is expected to grow just 5% in 2017 amid slow household income growth. Separately, the Australian Bureau of Statistics said the country's trade surplus hit A$3.51 billion in December, compared to the prior month's upwardly revised surplus of A$2.04 billion, while economists anticipated a decline to A$2.00 billion. As a result, the Kiwi rose to 76.30 against the Greenback, up from 76.00 seen ahead of the release.

The Aussie rallied on upbeat Australian data and being also boosted by weaker US dollar.

The pair broke firmly above former congestion tops and also took out Fibo barrier at 0.7630. Bulls are looking for the upper Bollinger band at 0.7690 that may temporarily cap gains as daily studies are overbought.

Hourly trough at 0.7633 marks initial support ahead of former congestion tops at 0.7600 zone and rising daily 10SMA at 0.7573 that is holding today’s action.

Strong bullish setup of daily studies, with multiple MA’s bull-crosses, strongly underpins for further bullish extension.

Break above 0.7690 barrier could extend towards 0.7758/0.7776 (11 Aug / 08 Nov 2016 highs).

US NFP data are in focus.

Res: 0.7690, 0.7758, 0.7776, 0.7833
Sup: 0.7633, 0.7600, 0.7575, 0.7549

The pair remains biased lower despite repeated failure to close below strong support at 112.50 that was cracked on Tuesday. Near-term action remains capped by daily Tenkan-sen (113.71) that maintains downside pressure. Bearish daily studies favor renewed probe below 112.50 for retest of next pivot at 112.00 zone (Fibo 38.2% of 101.17/118.65 upleg), break of which would signal fresh bearish acceleration. Conversely, lift above daily Tenkan-sen pivot 113.71) and past two days highs at 113.94, would ease persisting bearish pressure and signal prolonged directionless trading within 112.50/115.60 range. Daily Kijun-sen (115.33) marks next upper pivot, along with daily cloud top at 116.10. Tomorrow's US NFP data are expected to give more clues about pair's near-term direction.

Res: 113.34, 113.71, 113.94, 114.56
Sup: 112.50, 111.97, 111.34, 111.00

Cable is attacking key barrier at 1.2671 after strong two-day rally fully retraced 1.2671/1.2409 pullback.

Strong bullish setup of daily technical studies supports further upside, with bullish and long-tailed monthly candle of January underpinning.

Firm break above 1.2671 pivot would open breakpoint at 1.2772 (06 Dec 2016 high and top of broader 1.2772/1.2000 consolidation cycle) for stronger reversal signal.

Meantime, corrective easing could be anticipated on overbought slow stochastic.

Rising daily 10SMA continues to track the uptrend and offers good support at 1.2555, where potential dips should be ideally contained to keep intact lower breakpoint at 1.2409 (Fibo 38.2% of 1.1986/1.2671 ascend/55/100SMA bull-cross).

Interim support lies at 1.2615 (Fibo 23.6% of 1.2411/1.2678 upleg/hourly trough).

Res: 1.2726, 1.2772, 1.2795, 1.2864
Sup: 1.2645, 1.2615, 1.2555, 1.2541

The Euro is heading towards key near-term barriers at 1.0800 zone after yesterday's pullback was contained at 1.0733 (near 38.2% of 1.0618/1.0810 upleg).

The pair received fresh boost from less hawkish than expected Fed yesterday and managed to recover most of 1.0806/1.0733 pullback. With bullish daily studies being unaffected from yesterday's dip, focus remains at the upside as fresh acceleration higher is probing again falling 100SMA (currently at 1.0791), which lies just ahead of pivotal barriers at 1.0806/10 double top (highs of past two days) and 1.0824 (daily cloud top).

Sustained break here is needed to trigger fresh acceleration higher that would look for psychological 1.1000 barrier, also 200SMA. Strong near-term bullish sentiment supports scenario for now, as trader eye tomorrow's US jobs data.

Thick hourly cloud underpins near-term action (cloud top is currently at 1.0768 and marks initial support), with lower pivot at 1.0715 (hourly cloud base/daily Tenkan-sen).

Res: 1.0810, 1.0824, 1.0872, 1.0931
Sup: 1.0768, 1.0733, 1.0715, 1.0683

EURUSD

The EURUSD was indecisive yesterday. Price attempted to push lower bottomed at 1.0729 but closed a little bit higher at 1.0767 and hit 1.0788 earlier today. The bias is neutral in nearest term but overall price is still in a bullish phase since bounce from 1.0350 as you can see on my H1 chart below. Immediate support is seen around 1.0730 but key support remains at 1.0650. Immediate resistance is seen around 1.0800 followed by 1.0850/70. Overall I remain neutral.

GBPUSD

The GBPUSD continued its bullish momentum yesterday topped at 1.2679. The bias remains bullish in nearest term testing 1.2750 before testing 1.2790 key resistance which is a good place to sell with a tight stop loss. Immediate support is seen around 1.2615. A clear break below that area could lead price to neutral zone in nearest term testing 1.2565 area. Overall I remain neutral.

USDJPY

The USDJPY was indecisive yesterday. Price attempted to push higher topped at 113.95 but closed lower at 113.22. The bias is neutral in nearest term probably with a little bearish bias testing 112.00 region. Immediate resistance is seen around 113.50 followed by 113.95. As long as stay below 115.60 I still prefer a bearish scenario at this phase and any upside pullback should be seen as a good opportunity to sell.

USDCHF

The USDCHF failed to continue its bearish momentum yesterday topped at 0.9956. The bias is neutral in nearest term but overall price is still in a valid bearish phase targeting 0.9800. Immediate resistance is seen around 0.9956. A clear break above that area could trigger further bullish pullback testing 1.0000 area. Overall I remain neutral.