The bounced last week but failed to post a close above 0.8150. Resistance at this area and a failing 20 day SMA continue to offer resistance.
If a break were to occur at this level we would chance our stance on the pair to 'long'. However risks remain to the downside and with major event risk on both the EURO and Pound this week we prefer to stand aside for now.
The GBP/USD finds itself in a similar position to the EUR/USD this week.
Having tried to rally at the end of last week the pair struggled to hold above 1.6750. The continued recent trading below the rising trend line hints at a further move lower this week.
With price failing to hold above key resistance and remaining below the 20 day SMA we expect the pair to...
The pair has bounced from the 1.35900 support level late last week and RSI has picked up.
However the pair still remains in the confines of a broader down trend. The expectation is for further gains at the start of the week which could see a retest towards 1.36730 resistance. Ultimately if we get this move we would expect it to be capped around his level or to...
With GBP/USD looking to move lower and EUR/USD marking time, a potential long position is building on the EUR/GBP. RSI has turned up and the pair has closed back above the falling trend line. 0.81500 looks a potential target.
The pair has ground lower over the past few sessions but at present doesn't look likely to break further. With RSI already oversold the expected push lower may have to wait until we get a fundamental driver to cause a break lower. A break and close of 1.3590 should open the path back down to 1.3480 initially.
GBPUSD has broker the 14 day moving average and is now pushing against resistance at 1.68800.
While a pullback is favored back to 1.67900 a break of upper resistance would see the pair accelerate gains into the marked rising channel.
This would then target the potential for a retest of 1.7000.
With price moving towards the lower trend support, currently at 0.8109 EURGBP may soon find a floor. RSI is also approaching oversold territory. 0.8144 could prove to be a realistic short term target on an unwinding of the current move.
However broker major lower trend line support, EURUSD continues to consolidate in a tight zone between 1.37350 and 1.36730. While a major move lower is expected, it is hard to back at present with RSI approaching oversold. A daily break and close below 1.36730 would provide conviction to entering short.
Look to enter short on a a failed break above lower rising channel resistance, currently around 1.6880. RSI hitting resistance at 60 would also help to validate this view. First target would be the bottom of the longer term rising channel. This currently sits at 1.6790.