Weekly Forex Forecast - 14 February 2016

GBP/USD

The British pound fell initially during the course of the week but found enough support below to turn things around and form a bit of a hammer. By doing so, it looks like the market is ready to try to go higher and I think if we can clear the range for the week, we could see this market go to the 1.48 level. I don’t really have a scenario in which I’m comfortable selling at the moment, as this market is showing too much support.

GBPUSD

EUR/GBP

The EUR/GBP pair had a very strong showing early in the week, but turned back around to form a bit of a shooting star. By doing so, it looks as if the market is going to continue to try to find support below, and as a result we are more than likely going to see buyers enter this market and push this market higher. I’m looking to buy pullbacks on signs of support and I believe that the 0.75 level is the floor.

EURGBP

USD/CAD

The USD/CAD pair went back and forth during the course of the week, essentially forming a neutral candle. This is a market that should eventually go higher, but we need to see the 1.40 level above broken in order to make me comfortable buying this pair. I have no interest in selling, and I believe that there is a massive floor in this market somewhere near the 1.35 handle.

USDCAD

USD/JPY

The USD/JPY pair fell pretty hard during the course of the week, and I feel we are now going to try to test the 110 level. We did get a bit of a bounce towards the last couple of days, but quite frankly I think there will be sellers near the 150 level. I would not hesitate to start selling in that area on signs of resistance and exhaustion.

USDJPY

Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.