EUR/USD and GBP/USD Forecast - 22 August 2017

EUR/USD

The EUR/USD pair initially fell on Monday but turned around to rally yet again. We have broken above the 1.18 level, and it now looks as we have formed a bit of a bullish flag. If we can break above the 1.1850 level, I think that this market is ready to go much higher. Because of this, I have no interest in shorting and I believe that a pullback should only offer value. I believe that the 1.17 level underneath is going to continue to offer support, although we do have the Jackson Hole meeting going on this week, so we could see a bit of volatility due to statements coming out after Thursday. Nonetheless, I believe that the market is ready to go much higher, so I am very hesitant to start selling, unless we were to break down below the 1.15 level significantly.

EURUSD

GBP/USD

The British pound had a positive session on Monday, but I think that what is more important to pay attention to is that we are in a consolidation area. I think that the 1.2850 level underneath should continue to offer support, so therefore I’m not expecting much until we break down below that level on a daily close as far as selling is concerned. However, we could bounce from here and go looking for the 1.30 level above, but I also believe that market will have plenty of bearish pressure. Because of this, I do not believe in buying this market until we break above the 1.3050 level, which would show a significant swaying and momentum. Ultimately, I believe that we will continue to see bearish pressure on the British pound, and therefore unless the US dollar melts down, this market will probably continue to be a bit soft.

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.