EUR/USD and GBP/USD Forecast - 23 November 2018
The Euro tried to rally initially during the day on Thursday but continues to find a lot of noise above the 1.14 handle. This market has a lot of resistance built into the 1.15 handle, and of course we have to worry about the Italian debt situation which doesn’t seem to be working out quite well. However, if we did break above the 1.15 handle, then the market probably goes much higher. If we roll over from here, then I think the 1.13 level underneath would be a potential target, which has been important more than once. If we can break back below that level, then I think the 1.11 handle underneath would probably be targeted next. If we were to break above the 1.16 handle, that could send this market to the 1.18 level after that.
The British pound rallied significantly during the trading session on Thursday, breaking and above the 1.29 level, and then rolled over slightly. Overall, the market was reacting to twitter suggesting that Teresa May has agreed with her cabinet as far as a wording of the Brexit is concerned. However, there is a lot of hurdles to get beyond before the Brexit is actually Don, so I think the Algo trading got the better part of momentum during the day, especially considering that liquidity would have been a bit of an issue. The 1.27 level underneath is massive support, and I think that if we do rollover and break down through there, the market could go as low as the 1.22 handle. If we rally from here, I fully anticipate that the 1.30 level will be resistance, just as the downtrend line and the 200 day EMA will be.