EUR/USD and GBP/USD Forecast - 25 April 2017

EUR/USD

The EUR/USD pair gapped higher at the open on Monday as French election results came in less anti-EU than once thought. Because of this, we reached all the way to the 1.09 handle, an area that has been resistive in the past. We fell immediately, but found buyers underneath and it now looks as if the market is going to try to break out above the 1.09 handle. I currently believe that the 1.10 level will be targeted, and the pullback should offer buying opportunities all the way down to the 1.0750 handle. Because of this, I have no interest in selling this market and believe that it’s only a matter of time before the buyers return.

EURUSD

GBP/USD

The British pound had a slightly negative day but continues to find buying pressure just above the 1.2750 level. It appears that we are trying to form some type of pennant or wedge or even bullish flag. I believe that as long as we stay above the 1.2750 level, it’s likely that the buyers will continue to jump into the marketplace. It may take some patience, but I believe that the recent rally in the British pound is the real thing, and because of that we should continue to go much higher.

The 1.3450 level above was the top of the previous consolidation area, and I think that’s where the market is going to be aiming for. I have no interest in selling the British pound, although I recognize that it could be a very noisy moved to the upside. If we can break above the 1.29 handle, I think that’s the sign that we are going to go reaching much higher but recognize there is a lot of noise between here and there, so it will take a certain amount of tenacity and wherewithal to hang on to this long position.

GBPUSD

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.