EUR/USD Technical View
EurUsd traded above the 1.4800 level for the first three days of the week, but after a failed attempt at breaking lower on Wednesday the second try was successful and we witnessed a drop on Thursday and Friday, a drop that broke through the 1.4700/1.4735 support area and got very close to the 1.4600 round number which is the 61.8 Fibonacci retracement line of the last leg up from 1.4000 to the YTD high at 1.4967. Looking at the recent price action we can expect that the down move to continue although a retest of the trendline the pair broke through on Friday is to be expected, that should offer a new opportunity to enter short. Moving below the 1.4600 round number and a second trendline connecting higher lows on the daily chart will open up the 1.4500 area as a bearish target, an area which coincides with the 50.0 Fibonacci of the above mentioned move up.
GbpUsd Technical View
Cable tried to move higher but found tough resistance around the 2.0750 area and on Thursday it started to move lower, it lost over 200 points in the last two days of the week and appears to have validated the bearish flag we mentioned in our previous commentary; a bearish flag on the daily charts that has a projected target close to the 2.0000 round number. Closest support level is an ascending trendline just below the 2.0500 level once the pair gets that low we enter into a former consolidation range formed in first half of October and we get closer and closer to the 2.0365 support level established on September 12th. Conversely if the pair heads back up north we once again find the 2.0750/2.0775 area as the closest resistance that needs to be broken in order for the pair to push on higher.