The weekly chart below shows consecutive candles with long upper shadows. On the daily chart it would look like a nice rounding top... Also worth noting is that the rising trend line from November 2015 has been breached. I would want to be a seller below 0.8756 (weekly low) for a downside target of 0.8684 - 23.6% Fibonacci retracement of July 2015 low - Oct 2016 ...
The pair is extremely overbought…trading above 8/8 Murrey Line. However, the RSI shows room for rally. Hence, a daily close above 1.1285 (recent high) would open doors for a rally to 1.1366-1.14 levels. On the other hand, a break below 1.1166 would add credence to the turn lower from the overbought line and could yield a sell-off to 1.10 levels.
The erratic recovery from the low of 1.2642 does suggest the sellers have run out of steam, although the outlook remains bearish as long as the spot trades below 1.2815 (50-DMA). The RSI and MACD are bearish Only a daily close above the 50-DMA would revive the bull market and open doors for a break above 1.30 levels
On the above hourly chart, the RSI has confirmed a bullish price RSI divergence. The spot currently trades below 0/8 Murrey Line (oversold line). Thus, a recovery to 109.76 (1-hr 50-MA + Murrey Line) looks likely. A break higher would expose 110.00-110.20 levels. The descending trend line has been breached as well.
GBP/USD is struggling to push through 1.3009 (127.2% Fib expansion). We have already seen a failure to hold above 1.30 yesterday. A similar action today would open doors for a more pronounced sell-off to 1.2950 levels. A daily close above 1.30 today would open up upside towards 1.3150-1.3180 region.
EUR's recovery from yesterday's low of 1.0837 to 1.0880 today suggests the sell-off from the high of 1.1023 may have run out of steam for now and the pair could revisit 1.0906 (Mar 27 high) today. The gains could be extended further if the US retail sales contract. On the lower side, only a close below the 200-DMA would revive the bearish view.