The EUR/USD pair continued to move within a tight range just below the 1.37 area during today's session. However, there has been a sharp rise in the pair just before the opening of the European session, and is currently trading at 1.3695. Initial resistance for the pair is at 1.3708, followed by 1.3742. Meanwhile, initial support is at 1.3630, followed by 1.3596.
As for the AUD/USD pair, it has somehow managed to erase its losses during the weekend, and has successfully returned to the 0.8700 area. The trading volume has generally been light so far as the local market is celebrating Australia day today.
The pair opened today's session at the 0.8680 area, and is currently trading at 0.8727. Initial resistance for the pair is currently at 0.8737, followed by 0.8759. Meanwhile, initial support is at 0.8619, followed by 0.8598.
After reaching a two-year high at the 1.6670 area late last week, the GBP/USD pair has since retreated below the 1.6500 area over the weekend. It is, however, attempting to make a comeback at least to the 1.6500 area just prior to the opening of the European session.
Overall, the outlook for the GBP remains bullish despite the increased forward guidance by the Bank of England last week.
In the short term, news that will be significant to the GBP will be the United Kingdom's GDP, the figures of which will be released tomorrow (28 January, 9:30AM, GMT). Analysts expect it to grow by 0.8% in Q4 2013 versus the previous quarter (current 0.8%), while a 2.8% growth is seen over the past 12 months (current 1.9%).
In addition, traders will also await the Quarterly Inflation Report, which will be released on 12 February.
The GBP/USD pair is currently trading at 1.6521. Initial resistance for the pair is at 1.6586, followed by 1.6627. Meanwhile, initial support is at 1.6394, followed by 1.6354.
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