EUR/USD
The EUR/USD pair initially fell during the day on Friday, but broke higher as we have cleared a couple of candles that formed hammers on the daily chart. Because of this, the market looks likely to go reaching towards the upside again, and I believe that we will eventually reach towards the 1.19 level above. Ultimately, I think that the market will find that the buyers are going to go looking towards the 1.20 level. A pullback from here should be thought of as value, as the market has shown such resiliency. The 1.17 level underneath should be massively supportive. However, if we break down below there, then I think the market is looking towards the 1.15 handle under that. Ultimately, this is a market that looks very bullish.
GBP/USD
The British pound initially fell during the day on Friday, but then turned around to show signs of strength. I think that a break above the top of the candle for the Friday session should send this market towards the 1.32 level above. Ultimately, I think that the market will find buyers, and I think that short-term pullback should be buying opportunities. However, if we break down below the 1.2950 level, I think at that point the market can break down to the 1.2850 level. Remember, the British pound has a lot of noise around it due to the Brexit scenario, and with this being the case it’s likely that the market will be volatile, but I also think that it’s only a matter of time before we break out to the upside. Ultimately, I don’t have the ability to trade a large position, because I think that the volatility will be dangerous and therefore small positions are preferred. Given enough time, I would add to a winning trade.
