EUR/USD and GBP/USD Forecast

EUR/USD

The Euro initially fell during the trading session on Thursday but turned around to break above the 1.13 level again. This is a market that is trying to figure out what’s going on with the European Union, the Brexit, the Italian situation, and a whole host of other things. The 1.13 level has been important more than once, so it’s not surprising that the market continues to see a lot of uncertainty. At this point, if we break down to a fresh, new low I think the market then goes to the 1.11 handle underneath. Otherwise, we could rally towards the 1.15 handle, but that’s an area that should continue to offer resistance again. I think ultimately we are in a downtrend and will be looking for selling opportunities after short-term rallies.

EURUSD

GBP/USD

The British pound continue to get hammered during the trading session on Thursday, reaching down towards the 1.27 level underneath which has been more than simple support. I think if we can break down below there, then the market probably goes down to the 1.22 handle, because it is the measure of the move based upon the triangle. I have no interest in buying the British pound, because with the mass resignations that happen during the day in defiance of Teresa May, I think that the British pound is teetering on the brink of falling apart yet again. The 200 day moving average is sitting just above, and I think it will continue to be a massive resistance barrier also. It’s not until we get some type of Brexit deal or some type of certainty that we will probably see a sustained to rally in the British pound.

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.