GBP/USD, EUR/USD and EUR/GBP Forecasts – Pound and Euro on the Move

GBP/USD Technical Analysis

The British pound has rallied slightly against the US dollar during trading on Friday in the early hours, as we are bouncing from the bottom of an overall range. That does make a certain amount of sense because we’re heading into the weekend and traders probably want to take profit and go home.

The 1.3150 level seems to be an area where traders are looking for some type of opportunity, and I think that opportunity is presenting itself as short-term buying. The 1.33 level above probably causes a little bit of resistance; signs of exhaustion are probably a selling opportunity. This is a market that still, I think, favors the US dollar in general, but we are overextended.

EUR/USD Technical Analysis

The Euro is bouncing toward the 1.14 level. This is an area that previously had been supported as well. This is a market that I think is simply trying to reenter the previous consolidation area. If we do fail in this area, and I count this area all the way up to the 1.15 level, then I start shorting. Signs of exhaustion could be an opportunity to buy cheap dollars again. Keep in mind, the Euro is fairly weak in general against not only the dollar, but also some other currencies.

EUR/GBP Technical Analysis

Speaking of the Euro being weak against other currencies, against the British pound, it has also been weak, but it looks like the 0.86 level is trying to offer some type of support. It’s the bottom of a range that goes back about a year and a half, so that makes sense. A little bit of a bounce from here makes sense to me, probably reaching towards the 200-day EMA.

Not a lot in this, probably 50 pips, but if you’re a short-term trader, this could be enticing. That being said, this pair does move fairly slowly, so that short-term trade could end up being a longer-term trade over the course of 3 or 4 days. If we break down below the 0.86 level, then it opens up a move down to 0.85.

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