EUR/USD and GBP/USD Forecast - 2 February 2018

EUR/USD

The EUR/USD pair initially fell during the trading session on Thursday, but then broke higher, breaking above the 1.25 level. We are pressing the highs yet again, and with the jobs number coming out today I think that a pullback is possible. However, that pullback should be a nice buying opportunity, as the market looks ready to go much higher. This candle is very bullish and breaking above the highs would also sliced through the top of a shooting star, and that should send this market to the 1.2750 level. Ultimately, if the market pulls back at this point, I think there should be plenty of support near the 1.2350 level. The market is going to continue to go back and forth, but I think that the US dollar is going to continue to suffer in general, so that means the EUR/USD pair should continue to find plenty of buying.

EURUSD

GBP/USD

The British pound of course has done more of the same, initially falling but then showing signs of strength again later in the day. The market looks likely that we are going to reach towards the 1.43 level above, but I think that breaking above there should send this market higher, perhaps reaching towards the 1.45 level given enough time. Pullbacks should offer value, and I think that the jobs number could offer that short-term pullback that you can look to take advantage of. If we can break above the 1.45 handle, the market should continue to go much higher, perhaps reaching towards 1.5 level. The market seems to have a bit of a “floor at the 1.4 level, and I think that selling this market is going to be almost impossible if we are above that level, the US dollar continues to struggle, and the British pound will be one of the major beneficiaries.

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.