EUR/USD Technical View
Euro formed a big red candle on the weekly charts, as seen below, but the most part of the move was made on Thursday and Friday when the pair dropped almost 300 points, we witnessed a small consolidation period for the first 3 days of the week around the 1.4700 area. On Friday EurUsd broke through the closest support levels and pushed lower towards the 1.4400 area getting close to the 38.02 Fibonacci retracement line of the October-November move north that established the current YTD high at 1.4967. Breaking below the trendline connecting the October lows was a a clear bearish signal although a retest of the 1.4500 area is not out of the question in the next couple of days as this particular area has proved to be strong support turned now into resistance. Looking at the big picture we can see the 1.4300 area as the main bearish target and a place where the pair could find significant support as the bullish traders will try to establish a new base there.
GbpUsd Technical View
GbpUsd put in a third consecutive down week, and although it just pipped last weeks low the strength of the move from Friday gave a clear bearish signal. The pair started the week trading higher and it moved towards the resistance line connecting the YTD high at 2.1140 and November 28th high of 2.0825, after a touch of this trendline we saw the pair losing ground and a strong move on Friday it got below the 2.0200 area and closed the week around the 2.0180 December 6th low. We are getting once again closer to the lower side of the up sloping channel the pair has traded this year, the area around the 2.0100 could offer significant support and bulls might take advantage and try to reverse the down trend from the last few weeks. Our projected target of 2.0020 might not be touched if the above mentioned channel stays intact, or on the other hand a sharp move down and a reversal might complete our objective and the monthly bullish trend will remain intact.