EUR/USD, GBP/USD and EUR/GBP Forecast – US Dollar Fighting Back on Monday

EUR/USD Technical Analysis

The euro has dropped a bit during the early hours on Monday as the 50-day EMA continues to offer a little bit of resistance. We have been in a downtrend since the September Federal Reserve meeting, and at this point, it does not look like anything has changed. It appears we will continue to drift lower with an eye on the 200-day EMA and the 1.14 level as potential targets for those who are looking to sell this pair.

GBP/USD Technical Analysis

The British pound initially fell during the day but has turned around to show some signs of life. As things stand right now, we are still hanging around the 1.32 level, an area that previously had been significant support. Now, market memory comes into the picture and offers resistance. The 50-day EMA is likely to cross below the 200-day EMA given enough time, kicking off the so-called death cross, which is a longer-term negative signal, and one that people are quick to notice.

EUR/GBP Technical Analysis

The euro fell significantly during the session after gapping higher against the British pound. That being said, we are still very much in consolidation, and nothing has necessarily changed other than the fact that we turned things around and continued the struggle seen on Friday. The 0.8750 level is an area that previously had been resistance and should now be support. The 50-day EMA is getting close to that level as well. With all of that being said, this is likely a market that pulls back but finds plenty of value hunters willing to turn it around.

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