EUR/USD Technical View
Euro bounced back to retest that broken trendline we have marked on our daily charts, the move came as a bit of surprise to us after the ECB rate announcement on Thursday as we expected the pair to print a new low; well, we failed to make a new low and the quote just shot up breaking through the 1.4700/1.4735 resistance area and only stopping just above 1.4800 at the touch of the above mentioned trendline. At this moment in time we are in a tough zone, although the pair is in overbought territory on the daily chart more and more traders are starting to look once again at the 1.5000 as a serious target after the ECB decided to hold the interest rate. Breaking above yesterday’s high will bring the pair in throwing distance of the current record high at 1.4965and with a solid chance of reaching the 1.5000 target.
GbpUsd Technical View
GbpUsd traded inside a small range on Thursday, waiting for the BOE rate announcement and after that got out other than a small spike to 1.9670 the pair closed just a few points higher than the open; in today’s Asian session we saw a bigger move down that stopped at the 1.9500 area where it seemed to have found some decent support as we are witnessing a small retrace to the 1.9565 level which is the middle of today’s 150 point drop. Yesterday’s price action on cable, unlike that on the EurUsd, developed in line with our expectations that we mentioned them in our previous commentary, and for today we expect the down move to continue although the momentum has slowed down a bit, this day will be a good chance to see if the 1.9500 support zone is as strong as expected.