EUR/USD
The EUR/USD pair was very noisy during trading on Friday, reaching down below the 1.16 level again, and bouncing from the previous symmetrical triangle. It is because of this that I believe we are going to test the 1.15 level again. If that level gives way, we could go much lower. However, it’s an area of massive demand so it would not surprise me at all to see some type of bounce from there. If we can bounce from there, we will probably negate the triangle, and simply continue to bounce around between 1.1 5M 1.1850. I suspect that will probably be the case, and that the market is simply drifting lower to look for support. However, all things are possible and you should approach this market as such. Obviously, the Brexit will have its say about this pair and of course the GBP/USD pair.
GBP/USD
The British pound has tested the 1.30 level again during the day on Friday, seemingly to find a bit of bullish pressure. I believe that the market is probably well supported down to the 1.29 level, so I would anticipate that value hunters are starting to come back into the market. However, keep in mind that we are in a downtrend over the last several months, and that will be forgotten quickly. We need some type of catalyst for the British pound to rally, perhaps something along the lines of the Conservative party getting it together in the United Kingdom, with some type of unified plan for Brexit. Personally, I believe that the pound is completely oversold at this point, and that the danger probably lies to the upside. However, if we were to break down below the 1.29 level, this market could unwind drastically.
