EUR/USD and GBP/USD Forecast - 1 February 2018

EUR/USD

The Euro rallied initially during the trading session on Wednesday but turned around to form a shooting star. If we can break down below the bottom of the shooting star, we could probably drop to the 1.23 level, but I also recognize that there is the jobs number coming out on Friday, so I am anticipating that today is going to be very quiet day in the Forex world. The 1.23 level should be massively supportive, at least in the short term so I do not anticipate much of a selloff. On the other side of the coin, if we rally from here, it will probably selloff before traders get involved Friday morning. Longer-term, I believe that we are going higher, but it may take a while to break out to the upside. Once we do, I have a longer-term target of 1.32.

EURUSD

GBP/USD

The British pound went back and forth during the trading session on Wednesday, showing signs of volatility and of course confusion. I also recognize that the market is in an uptrend, so pullbacks should be buying opportunities with the 1.40 level offering massive support. I believe that the market will eventually break out above the 1.43 level but with the jobs number coming out tomorrow, it’s likely that it will be very quiet over the next 24 hours, but I think given enough time we will find a reason to rally. If we can break above the 1.43 level, then we can continue to go higher, reaching towards the 1.45 level next. That is a large, round, psychologically significant number, and it of course will be difficult to break over, but I think eventually we will. Pullbacks continue to offer value and I will look at them as such.

GBPUSD

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.