EUR/USD, GBP/USD and EUR/GBP Forecast – US Dollar Trying to Rise

EUR/USD Technical Analysis

The euro is somewhat sideways at the moment as the 50-day EMA has offered quite a bit of resistance over the last several weeks, and it looks like it’s doing the same now. If the market were to drop from here, it’s possible that it could go all the way back down to the 1.14 level, where the 200-day EMA hangs around. If the market were to break above the 50-day EMA, then it could move toward the 1.17 level. Ultimately, the US dollar has been strengthening since the rate cuts have come, and that is a pattern that could very well continue.

GBP/USD Technical Analysis

The British pound has fallen again during Wednesday’s trading session, as the 1.32 level offered significant resistance once more. It’s important to remember that this level had previously acted as both support and resistance, so market memory is clearly in play. Given enough time, the British pound could move toward the 1.30 level. We also have the 50-day EMA reaching toward the 200-day EMA, setting up the so-called death cross. This is something that many longer-term traders will view as quite bearish.

EUR/GBP Technical Analysis

The euro has rallied a bit during the early hours on Wednesday as it looks like the market is trying to break out to a fresh new high. The measured move of the previous consolidation area suggests that this pair could go to the 0.89 level, which is the current target. There’s no interest in shorting this pair at the moment, and short-term pullbacks should continue to offer buying opportunities. Ultimately, the market has broken a major resistance barrier and is now trying to build up enough momentum to continue racing toward that target.

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