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GBPUSD has found a strong resistance obstacle on the significant psychological level of the two-month high of 1.3000, reached on January 17. However, Cable has been trading within the 1.3000 and the 1.2855 zone over the last week, which is the 23.6% Fibonacci retracement level of the downleg from 1.4375 to 1.2390.

The short-term bias looks neutral as the MACD keeps moving sideways in the positive area, while the RSI is pointing marginally down above the threshold of 50. It is worth mentioning that the 20-day simple moving average (SMA) surpassed the 40-day SMA, creating a bullish crossover, suggesting some gains.

If the price slips back beneath the 23.6% Fibonacci and the 1.2815 support, this could open the door towards the 20- and 40-SMAs around 1.2770 and 1.2725 respectively at the time of writing. Moving lower, a violation of these levels would increase negative movement, hitting the 1.2660 support, registered on January 15, while a drop below this line would open the way towards the 1.2475 barrier.

If investors turn their eyes even higher though, the pair could re-challenge the 38.2% Fibonacci mark of 1.3145, before pushing prices until the 1.3170 resistance. If bullish actions appear stronger, the market could find the next obstacle at the 1.3255 region, identified by the peak on October 12.

Concluding, the near-term risks look to be turning neutral to negative after the pullback on 1.3000, while, in the long-term, the outlook would shift to bullish if the price action surpasses the 61.8% Fibonacci near 1.3600.

Daily Pivots: (S1) 140.88; (P) 141.20; (R1) 141.72; More...

Intraday bias in GBP/JPY remains neutral for consolidation below 142.22 temporary top. Further rise is expected as long as 137.35 minor support holds. On the upside, above 142.22 will extend the rebound from 131.51 to 143.93 resistance first. Break will pave the way to 149.48 resistance next. However, break of 137.35 will suggest completion of rebound from 131.51 and bring retest of this low.

In the bigger picture, corrective medium term rise from 122.36 (2016 low) has completed at 156.69 (2018 high) already. That came after failing to break through 55 month EMA. No change in this view. Strong rebound from 131.51 argues that fall from 156.59 is just the second leg of the corrective pattern from 122.36. Break of 149.38 resistance will confirm the third leg has started to 159.69, and possibly above. Nevertheless, break of 131.51 will pave the way to retest 122.26 low.

Daily Pivots: (S1) 124.48; (P) 124.65; (R1) 124.84; More....

Intraday bias in EUR/JPY remains neutral at this point. On the upside, break of 125.09 resistance will extend the rebound from 118.62 to 55 day EMA (now at 126.59) and above. On the downside, break of 123.40 minor support will turn bias back to the downside for retesting 118.62 low instead.

In the bigger picture, medium term rebound from 109.03 (2016 low) has completed at 137.49 already, with corrective structure. Fall from 137.39 is possibly just the second leg of the corrective pattern from 109.03. Break of 133.12 resistance should start the third leg to 137.49 and above. Nevertheless, break of 118.62 will resume the down trend from 137.49 for 109.03/114.84 support zone instead.

XAUUSD (1277.66): Gold prices touched down to the 1280 handle and price action closed below this level. With the Stochastics oscillator in the oversold levels, we could expect to see a correction if the momentum stalls. A clean break of the 1280 handle is required. Therefore, there is scope that if gold prices decline further, we could expect the 1280 handle to be tested for resistance. Alternately, we could see price action consolidating around this level for the near term

Daily Pivots: (S1) 0.8793; (P) 0.8829; (R1) 0.8851; More...

Intraday bias in EUR/GBP remains neutral for consolidation above 0.8763 temporary low. Further decline is expected as long as 0.8927 support turned resistance holds. Below 0.8763 will target 0.8620/55 support zone. We'd expect strong support from there to bring near term reversal.

In the bigger picture, EUR/GBP is seen as staying in long term range pattern started at 0.9304 (2016 high). The medium term range is set between 0.8620 and 0.9101. Downside break out of 0.8620 will pave the way back to 0.8302/12 support zone. Break of 0.9101 will bring retest of 0.9304/5 resistance.

Daily Pivots: (S1) 1.5836; (P) 1.5876; (R1) 1.5918; More....

Intraday bias in EUR/AUD remains neutral for consolidation above 1.5774 temporary low. s long as 1.6154 resistance holds, further decline is still expected. Below 1.5774 will target 1.5346 key support. However, break of 1.6154 will turn intraday bias back to the upside for retesting 1.6765 instead.

In the bigger picture, the failure to sustain above 1.6587 key resistance (2015 high) argues that up trend from 1.1602 (2012 low) is not ready to resume yet. But still, as long as 1.5346 support holds, outlook will remain bullish. Break of 1.6765 will target 61.8% retracement of 2.1127 (2008 high) to 1.1602 at 1.7488 next. However, firm break of 1.5346 key support will indicate trend reversal, with bearish divergence condition in weekly MACD, and turn outlook bearish.

AUDUSD (0.7137): The Australian Dollar weakened as price action posted a brief retest of the resistance level a 0.7191. Failure to close above the resistance level put the downside pressure in price. With the price extending the declines from the resistance level, the AUDUSD could go through for a retest to the lower support at 0.7022. The drops could initially stall at 0.7050 which marks the 38.2% Fibonacci retracement level followed by the retest of the lower support.

EURUSD (1.1357): The EURUSD currency pair continues to remain weak as price action seen testing the previous lows at 1.1358. A close below this level could extend the euro's declines down to 1.1334 level of support. The longer-term support remains at 1.1275 region which will come in as the next target to the downside. Any rebound off the current level could see the falling trend line being tested for resistance once again. The overall bias in the EURUSD remains to the downside.

Daily Pivots: (S1) 1.1308; (P) 1.1328; (R1) 1.1355; More...

At this point, EUR/CHF is staying below 1.1348 resistance and intraday bias remains neutral. Outlook is unchanged as we're slightly favoring the case the choppy decline from 1.1501 has completed at 1.1181 already. On the upside, break of 1.1348 will confirm this bullish case and turn bias to the upside for retesting 1.1501 next. On the downside, in case of another fall, we'd expect strong support from 1.1154/98 support zone to contain downside to bring rebound.

In the bigger picture, price actions from 1.2004 medium term top is seen as a correction only. Downside should be contained by support zone of 1.1198 (2016 high) and 61.8% retracement of 1.0629 to 1.2004 at 1.1154 to complete it and bring rebound. A break of 1.2 key resistance is still expected in the medium term long term. However, sustained break of the mentioned support zone will mark reversal of the long term trend. In that case, 1.0629 key support will be back into focus.

The British pound posted modest gains on the day after it became evident that the UK government was pursuing a plan B. The details include amending the Irish border backstop arrangement as well.

On the economic front data from Germany showed that producer prices fell 0.4% in December. This was more than forecasts of a 0.1% decline estimated by economists. The December's declines come following a 0.1% increase in the month before.

The Bank of Japan's core inflation rate increased 0.4% in December. This was slightly lower than the median estimates which forecast a 0.5% increase. The BoJ's core inflation rate rose 0.5% in November.

The European trading session will start off with the UK's monthly jobs report. The average earnings index should remain steady, rising by 3.30%. This marks the same pace of increase compared to the previous period. The unemployment rate remains steady at 4.1%.

From the Eurozone, the German ZEW economic sentiment index is due later in the data. Economic sentiment drop even more with the index expected to fall to -18.8, down from -17.5 previously. Eurozone's ZEW economic sentiment index is next which should ease to -20, compared to -21.0 prior.

The NY trading session will see Canada's manufacturing and wholesale sales coming out. In the U.S. the existing home sales report is due to show a modest slowdown with 5.27 million units in December compared to 5.32 million units previously.

Later in the overnight session, New Zealand will be releasing its quarterly inflation report. New Zealand inflation should remain flat during the fourth quarter of 2018.