EUR/USD and GBP/USD Forecast - 5 June 2019

|

EUR/USD

The Euro went back and forth during the trading session on Tuesday, breaking above the crucial 1.1250 level. This is a market that sees a lot of resistance at this region, so the fact that we gave back quite a bit of gains is in a huge surprise. However, it looks as if we are at least sticking around this area. I think there is a lot of confusion right now, and Jerome Powell suggesting that perhaps the Federal Reserve may be willing to cut rates if necessary threw even more of a mess into the market. At this point, if we break down below the bottom of the candle stick for the trading session, then I think the market rolls over and goes back into the consolidation area. However, if we break above the highs of the day it’s a sign that we are probably going to try to grind to the upside.

eurusd

Advertisement
Great trade opportunities are waiting - don't wait to profit from this pair!
TRADE NOW

GBP/USD

The British pound rallied a bit during the trading session on Tuesday as well, but this may have been more or less an anti-US dollar move than anything else. I think there is significant resistance just above at the 1.2725 region, and most certainly there is resistance at the 1.28 handle. I still believe that selling short-term rallies that show signs of exhaustion might be a way to go going forward, and I also believe that we are going to go looking towards 1.25 handle underneath, which is a large, round, psychologically significant figure. It’s an area that we have also seen a bounce from recently. However, if we were to break above the 1.28 handle, then it’s possible that we could go all the way to the 1.30 level. I feel that it’s very unlikely to happen, but it is what the charts tell me.

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.