EUR/USD and GBP/USD Forecast

EUR/USD

The Euro rallied initially during the trading session on Friday but fell yet again to form a shooting star for the second day in a row. That of course is a negative sign, but ultimately when you look at this pair we are in a massive consolidation area, and nothing has changed. This might be a bit of a pullback to try to find value underneath, which is an argument that I can understand. On the other hand, if we can break above the highs from both Thursday and Friday, that’s a very bullish sign. We are essentially a “fair value” in this area, so I think we are looking at opportunities about two handles away. At this point, we are essentially in a “no touch zone.” If we find ourselves closer to the 1.12 level, I become more bullish, just as I become more bearish closer to the 1.15 level above as the 200 day EMA coincides there. At this point, I do think that we are trying to form a longer-term basing pattern, and that we will eventually break out to the upside.

EURUSD

GBP/USD

The British pound pulled back a bit during the trading session on Friday, as the market has gotten a bit overdone. This is good though, because we have seen far too much in the way of bullish pressure to continue going higher. I think that the British pound has bottomed though, and at this point I am looking for value underneath. I believe that the 1.30 level underneath should be massive support, as it is a large, round, psychologically significant figure, and of course an area that we have seen a lot of clustering. Traders have recently started to warm up to the idea of the British pound as it looks like the Brexit will be delayed.

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.