EUR/USD, GBP/USD and EUR/GBP Forecasts – Currencies See the USD Slip on Monday

EUR/USD Technical Analysis

The question is whether or not we can reach the 1.18 level above. The 1.18 level is a major resistance barrier that I think a lot of people will have to pay attention to, but it is also an area that has been like a magnet for price. So, if we can get above there, I think the Euro has somewhere to be. In the short term, I think this is just the pushback against all of the selling. I don’t know if the day itself means much.

GBP/USD Technical Analysis

The British pound is rallying quite nicely as it is heading towards the 1.35 level. The 1.35 level has been an area of contention, almost like a magnet for price as well, extending all the way to roughly 1.3550. I think signs of exhaustion will be sold by short-term traders here. This is a market that, although bullish over the last couple of months, really over the last 7 months or so, has essentially gone nowhere despite the fact that we’ve had some extended runs from time to time. With that being the case, I think you continue to see a lot of choppiness here.

EUR/GBP Technical Analysis

The Euro looks as if it is trying to fight back against the pound, but it continues to fail. Every time it rallies, it seems to slump a bit, and I’m watching this 200-day EMA in this pair for potential support. If we were to break down below there, then we could open up the possibility of a move down to the 0.86 level.

The 0.86 level, of course, is an area that’s been important multiple times, and if we can break down below there, we really start to see the momentum pick up. I do prefer the pound over the Euro, no doubt about it, but at this point in time, I think we’re still trying to set the tone, whether or not we can actually break down. This is a market that features two central banks, one in Europe, which is sitting still, and the other in London, which, of course, has recently cut, but it’s going to be very slow, so the interest rate differential will continue to favor the British for quite some time.

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