EUR/USD 4H Chart 5/22 (click to enlarge) After a rally from 1.0520 to 1.1466, EUR/USD retreated this week. After today's (5/22) US CPI data, the greenback strengthened across the board, and the EUR/USD continued the earlier decline, breaking a rising trendline from 1.0520. It is still early, and a break below 1.10 might be needed to really bring in the bears in this market. But, if price pulls back and fails to climb back above 1.11, the prospect of a bearish outlook is stronger, and the 1.0520 low would be in sight. GBP/USD 4H Chart 5/22(click to enlarge) GBP/USD rallied from 1.4564 (low on the year) to 1.5851 before retreating. This week, there was a bullish attempt after the BoE meeting minutes, but the attempt failed to reclaim 1.58. Instead, after the US CPI data, we are seeing cable fall and crack the rising trendline from 1.4564. The bearish breakout would be more clear if we see price fall below 1.54. It would also help the case for a bearish outlook if price fails to rebound back above 1.56. Now, I am a tad more bullish on GBP than on EUR, so I would limit the bearish outlook on GBP/USD first to the 1.51 handle – that is if it first breaks below 1.54. Also, if there is a pullback I would like to see price hold under 1.56 to improve the outlook towards 1.51. Otherwise, above 1.56, we might see a retest of that 1.5815 high with risk of extending higher towards that 1.60 psychological level.