EUR/USD, GBP/USD and EUR/GBP Forecast – USD Trying to Fight Back on Wednesday

EUR/USD Technical Analysis

The euro initially tried to rally during the trading session here on Wednesday, but it looks like the 50-day EMA is offering a significant resistance barrier, with the downtrend line coming into the picture as well. All things being equal, this is a market that I still favor fading, and it does look like that’s about to happen. Again, the market could open up the possibility of a drop towards the 1.14 level, underneath where the 200-day EMA sits just above. With that being said, I have no interest in buying this pair, at least not right now. And as it looks like right now, it looks like exhaustion will continue to be a bigger thing.

GBP/USD Technical Analysis

The British pound initially fell but then rallied to reach the 1.32 level again. We’ve seen a lot of selling pressure in this area. The 50-day EMA is trying to break down below the 200-day EMA, but we’ll have to wait and see. All things being equal, this is a market that shows a lot of consolidation between the 1.30 and 1.32 level. This is an area where we continue to see a lot of questions being asked, but if we break to the upside, once we clear the moving averages, I think we have a shot of this pair going higher.

EUR/GBP Technical Analysis

The euro initially rallied against the British pound but gave back those gains really quickly. This is not a good look, but we still have plenty of support underneath that could keep this market afloat. The 50-day EMA is sitting around the 0.8750 level. All things being equal, this is a market that continues to look like it’s going to be choppy, but I do think if we get an opportunity to send this market to the upside, then it’s possible that we head to the top of the range somewhere around 0.8830 or so.

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