Technical Overview of GBP/USD and EUR/USD Currency Pair

Currency pairs overviews

GBP USD

GBP traded higher against USD and closed at 1.3017.

GBP/USD looks to extend the bounce towards 1.3050 ahead of the UK CPI report, as broad-based US dollar weakness and bullish technical set up underpin the sentiment around the spot.

  • Flat – closed up 0.2%, as expectations of a Jan BoE cut cooled
  • Inflation data on today and retail sales Friday will be key for sterling
  • Despite bounce daily charts are negative, though at low end of recent ranges
  • Momentum studies, 5, 10 & 21 DMAs head lower and 21 day Bolli bands slip
  • 1.2900, December low then 1.2887 lower 21 day Bolli band are major support

According to the Analysis, pair is expected to find support at 1.2973 and a fall through could take it to the next support level of 1.2954. The pair is expected to find its first resistance at 1.3033, and a rise through could take it to the next resistance level of 1.3052.

EUR USD

EUR traded higher against USD and closed at 1.1127.

  • EUR/USD barely moved in Asia trading in a 1.1126/31 range
  • Most of the action in regionals as USD moved up on Mnuchin comments\
  • Resistance at 10-day MA at 1.1140 with option selling ahead of 1.1150
  • Large option maturities 1.1100/50 defining recent range
  • Break above 1.1150 targets 61.8 fibo of 1.1240/1.1085 at 1.1181
  • EZ IP later today, but US-China trade deal likely to be main event

According to the Analysis, pair is expected to find support at 1.1111 and a fall through could take it to the next support level of 1.1101. The pair is expected to find its first resistance at 1.1141 and a rise through could take it to the next resistance level of 1.1151.

For More information about the release time of news and its impact visit Economic Calendar Page!

Author: Mark Burg

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