EUR/USD, GBP/USD and EUR/GBP Forecast – US Dollar Drifts Lower on Thursday

EUR/USD Technical Analysis

The euro rallied a bit during the trading session here on Thursday as we are now testing the 1.1550 level, an area that previously had been support. We are starting to pull back just a bit, and that wouldn’t surprise me at all to be a selling opportunity, as the market has started to round off quite a bit and the U.S. dollar has been strengthening against most things. With this being the case, I am looking for signs of exhaustion, and I’m going to start selling, looking for the 1.14 level where the 200-day EMA sits and where we’ve seen a lot of action previously.

GBP/USD Technical Analysis

The British pound has rallied quite nicely after the Bank of England actually chose to hold, but it was a much tighter vote than anticipated for that interest rate decision. We shot straight up in the air, and now it looks like we are starting to give back some of the gains. Ultimately, I do think that 1.30 ends up being a target initially, and then 1.2750 is my target after that. You notice that we’re already starting to roll over a bit.

EUR/GBP Technical Analysis

The euro is back and forth against the British pound as we just don’t really have anywhere to be at the moment. After that recent breakout, traders, I think, are trying to get a grip on where we go next. The 0.8750 level is almost certainly going to be a bit of support, as it had previously been a resistance barrier. We did have an ascending triangle, and therefore, if we drive from there, where we find ourselves on Thursday, then that’s an area I think buyers will be interested in. The 50-day EMA is starting to reach toward that area. Based on the measured move of 150 pips from the triangle that we had been in, it opens up the possibility of a move to the 0.89 level, and that is, in fact, my target.

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