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For intermediate-term fundamental and technical analysis on your favorite currencies and markets, check out the DailyFX 2Q Forecasts.

GBP/USD Weak Price Action

Cable’s inability to rally over the past couple of weeks following the precipitous decline off the April high has it positioned to move towards support around 13300, where there are several swing highs/lows from October-December.

A lot of the juice has been squeezed from the short-trade here, already, but as far as the path of least resistance, short-term traders appear to still have room before running into a potential turning point. In the event 13300 gives way with force, there isn’t anything substantial until near 13000.

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GBP/USD Daily Chart (No Rally following decline points to more weakness)

GBP/USD daily chart, weakening price action

GBP/AUD Forming a Descending Wedge

Price action in sterling-aussie continues to weaken with bounces growing increasingly smaller. This is taking shape while slightly breaching a trend-line extending higher from the August low. The descending wedge taking shape suggests we will soon see another leg lower.

A firm drop below 17900 will have GBP/AUD rolling downhill, with the next targeted level of support arriving around 17600, the bottom of a consolidation period during February and March.

GBP/AUD Daily Chart (Price action weakening)

GBP/AUD daily chart, weakening price action

GBP/AUD 4-hr Chart (Descending wedge)

GBP/AUD 4-hr chart, descending wedge forming

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---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX