GBP/USD
The GBP/USD gave up its gains after reports suggesting that the UK Prime Minister, Theresa May would trigger the Brexit in a few days, on the 29th of March. In the beginning of this week’s trading, the pair extended its gains to 1.2435, and after these news, the pair retreated to 1.2333 before settling around 1.2350 at the time of writing. Tougher negotiations with the EU means more pressure on the GBP, hence, gains will be lost. The UK inflation data will be announced today, and the comments from the governor of Bank of England would have strong effect on the pair’s performance.
Technically: the pair still needs to be established above 1.2400 to confirm the bullish view, which would support the move towards 1.2450 and 1.2520. I still prefer to sell at bullish bounce.
On the bearish side: the nearest support levels are currently at 1.2300, 1.2250, 1.2200 and breaking below the last one would end the hops of more gains.
EUR/USD
The EUR/USD is still maintaining its gains above 1.0700 but these gains still need more momentum to achieve more heights. Since the beginning of this week’s trading, the pair’s movements is still in a range between 1.0780 and 1.0716, breaking any of these levels would confirm the continuity in that direction. The Euro latest gains were supported by the failure of the extreme right parties, supporting the exit of the EU, in the Dutch elections, and the focus now shifted to the French elections next month. The gains of the unified currency came in the shadows of a weak US dollar with a less bullish tone from the Federal Reserve after raising the fund rates last week.
Technically: Breaking above 1.0780 would support a bullish trend and we might see heights at 1.0820 and 1.0900, which are supporting the pair’s bullish momentum. It should be noted that any gains for the Euro would be threatened by the uncertainty of the European elections this year.
On the bearish side: the nearest support level are currently at 1.0700 and 1.0650. any break below the later would threaten the current bullish move.