EUR/USD Technical View
EurUsd formed a doji bar on the weekly chart finding support at an ascending trendline connecting higher lows and getting very close to the 50.0 Fibonacci retracement line of the move up from 1.4000 to the YTD high at 1.4967. The pair moved higher for the first two days of the week and after that we saw a big down move on Wednesday that continued until the ECB rate announcement on Thursday after which the pair started to move up again and finally closed the week very close to the opening levels from Sunday night. Having an oversold status on the daily and 4 hour timeframes we can expect the 1.4600 support level to hold and while above that we should look for a retest of Tuesday’s high at 1.4770. On the other hand if the pair slips below 1.4600 the next support is the 1.4500 area where we can observe the 50.0 Fib line mentioned above and the ascending trendline, all of these should offer some decent support and a break under it could trigger a much bigger move.
GbpUsd Technical View
Cable continued to move lower this week, after the bearish flag we’ve kept mentioned got triggered. After a retest of the 2.0650 resistance on Monday the pair moved straight down getting below the 2.0200 area on Thursday when the BOE cut the interest rate by 0.25%; we saw a small retracement on Thursday afternoon and on Friday but while the price is under the 2.0365 resistance we can expect the down move to continue towards its projected target of 2.0020. As seen in the chart below the pair is getting closer to the lower side of the ascending channel it has been trading in for the last few months and although we expect a push towards the 2.0020 area, trading below 2.1000 will make us monitor very closely the price action as a bounce back from that support level is not out of the question.