EUR/USD, GBP/USD and EUR/GBP Forecasts – Currencies Quiet Early on Thursday

EUR/USD Technical Analysis

The euro has done very little in the early hours of Thursday, as we are now facing significant resistance in the form of the 1.17 level. This is a market that I think remains somewhat range-bound, although it looks like we are starting to see a little bit more euro positivity over the last several sessions, perhaps in anticipation of the Federal Reserve interest rate decision next Wednesday. Whether or not they cut rates doesn’t really matter, I believe, although they are expected to. I believe that most of the focus will be on the press conference and the statement. That determines where we go next.

All things being equal, the market is still in a range between 1.14 on the bottom and 1.18 on the top, with a little bit of an upward drift recently, but over the last couple of months, it’s been somewhat negative. I think we’re just trying to figure out where to go.

GBP/USD Technical Analysis

The British pound has gone back and forth there in the course of the trading session on Thursday so far, with a 1.3350 level offering a barrier.

We can continue to go higher; that obviously would be a very bullish sign, and it is worth noting that the Wednesday candlestick was extraordinarily bullish, but I find it interesting that on Thursday, we’re just standing still. This tells me that maybe there isn’t as much conviction as Wednesday seemed to provide, but again, we’ll have to wait and see. I think a lot of this comes down to next week’s interest rate decision, and it wouldn’t surprise me at all if we just drift sideways.

EUR/GBP Technical Analysis

The euro initially tried to rally against the British pound but continues to suffer at the hands of selling pressure. That being said, we are sitting right at a support level that was previously resistance, and we are hanging around the 50-day EMA as well, all things being equal. This is a market that I think continues to see a lot of questions asked of it. The 0.89 level is a massive resistance barrier, but it is also a target based on the previous consolidation.

So, I think we get more chop. I still, at least so far, favor the upside, but we’ll have to wait and see. If we break it down to the 0.87 level, then for me, I think it’s a longer-term short. We’ll just have to wait and see. Pay attention to how the Euro and the British pound are behaving against the US dollar. It’ll tell you which one wins here.

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