GBP Overdue For Correction?

The U.S. dollar experienced a new wave of weakness and EUR/USD and GBP/USD soared as a result.

As for the GBP/USD, the recent linear upward movement appears to be somewhat stretched with a correction being overdue. We may see a bullish extension until 1.3840 but traders should brace for a correction since the pair is in deeply overbought territory. Below 1.38 we will focus on the former 1.3760-50 resistance which could now serve as a support.

EUR/USD: The euro was able to stabilize above 1.21 and we now expect the pair to trade between 1.2175 and 1.2050, whereas a break above 1.2180 could increase bullish momentum.

DAX: As long as the index remains above the crucial 14000-handle we focus on a next higher target at 14230.

We have U.S. Consumer Prices scheduled for release today at 13:30 UTC while an unexpected outcome can lead to a spike in volatility in USD crosses.