EUR/USD, GBP/USD and EUR/GBP Forecast – US Dollar Continues to Look Strong Overall

EUR/USD Technical Analysis

The Euro initially rallied slightly on Wednesday before showing renewed exhaustion, as it looks like we are trying to break down below the 1.15 level in pursuit of 1.14. I see nothing on this chart suggesting that it won’t happen. The 1.14 level is particularly important; not only is it a large, round, psychologically significant figure, but it also aligns with the 200-day EMA in the same area. Short-term rallies should be sold into at the first signs of exhaustion, as the trend continues to favor the U.S. dollar.

GBP/USD Technical Analysis

The British pound is attempting to rally during Wednesday’s session but can’t seem to build any real momentum. As long as we remain below the 200-day EMA, any rallies should be viewed with skepticism. I can make a case for the pound dropping toward the 1.2750 level, and possibly even lower at this rate. We’ve been in a downtrend since the FOMC meeting in September, despite a couple of Federal Reserve rate cuts, underscoring just how weak the pound really is.

EUR/GBP Technical Analysis

The euro has gained slightly against the British pound but quickly gave back those gains. The 0.88 level has proven difficult to break through, though I believe we will eventually move above it. The 0.8750 level below remains a strong support zone, having previously acted as resistance. When you zoom out to longer-term charts, the path to 0.89 looks choppy, with resistance dating back to 2023. Overall, this appears to be a slow, grinding uptrend—more of a buy-on-the-dip scenario than a sharp breakout.

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