SP500 , GBPUSD and EURUSD updates.

Last week I put the idea forward that we may see a 'Buy the rumour - Sell the fact' type reaction to the QE news, however I suggested it may not happen until the payroll data was behind us. It is possible this may be happening, though whether this is part of a bigger bearish turn I have no clue at this stage. First support, and strong support, should be at around 1195/97 where the base of the rising channel since early Sep occurs.

GBPUSD FX

Last week's 'Cup + Handle' pattern breakout may have failed. Yesterday's move has seen GBPUSD move back below the breakout line, although it is only a marginal break thus far. Nonetheless, the speed of the rejection of the breakout, suggests to me at this stage that this may be a valid failure, interestingly it has also occurred as a very bearish '3 Black Crows' candle pattern. Breakout failures can often be more telling and significant than successful breakouts. A sustained GBPUSD break below 1.5800 should confirm the failure, and could set-up a move much lower to around 1.5300. I would expect 1.6130 to act as a firm cap if this is going to move lower. 

EURUSD FX

Short-term the EURUSD may have find support in the 1.3700/1.3800 area, whilst on the 4 Hourly Candle Chart there is some sign of Bullish Divergence on the RSI and the MACD Diff, a correction back towards 1.3900 - 1.4000 can not be ruled out at this stage, whilst a clear break of 1.3700 could suggest more downside to come.