EUR/USD
The EUR/USD pair had a volatile Thursday session as the ECB released an interest rate decision, but more importantly had a news conference afterwards. The market seems a bit confused, so I believe that the market will continue to go higher. A gap below should continue to offer plenty of support, so I believe that the market will eventually continue to find buyers on dips. The 1.0750 level underneath continues to be supportive, and therefore I’m looking for some type a supportive candle between here and there to start going long. A breakout above the top of the consolidation of the last few trading sessions should send this market looking for the 1.10 level.
GBP/USD
The British pound rallied during the day again, breaking above the top of the hammer from the previous session. We have even made a fresh, new high, and it now looks as if the British pound will continue to try to grind to the upside. I have a longer-term target of 1.3450 as you probably know, and because of this it’s likely that the market will continue to be a “buy on the dips” situation. I believe that the 1.2750 level will offer massive support now, it’s only a matter of time before we find buyers on dips and therefore I look at this is a market that should continue to go higher. The 1.3450 level above continues to be resistance as far as I can see, because it was the top of the consolidation area that we had been in previously.
I believe that the inflationary pressures and the United Kingdom should continue, and with that being the case it’s almost impossible to think about selling. I believe that the market will be choppy, but given enough time the buyers should prevail as we have seen such a massive surge to the upside as of late.
