EUR/USD Technical View
EurUsd formed an inside bar on the weekly charts, as seen below, we witnessed a sharp move down on Monday and after that the pair bounced back and although it tried to test the 1.4735 YTD high it lacked the energy to stay above 1.4700 and gave us some weakness signs on Thursday and early Friday, only managing a small gain in Friday’s US session and closed the week around the 1.4650 level. The bullish momentum has clearly slowed down and we have even seen some signs of an US dollar strength, while trading above 1.4500 and that up sloping trendline we have on our charts the bias is still bullish but a failure to trade higher and form or even contest the current YTD high will put additional pressure on the pair and we could see a stronger retracement. On the south side the closest support is represented by the 1.4600 level followed lower by the 1.4500/1.4515 area, if the pair gets below that we can say that the pair has entered into a retracement move.
GbpUsd Technical View
Cable moved significantly lower this week, after hitting the top side of the trading channel its been in for a few months last week it just sinked this week for more than 500 points; most of the drop was realized on Monday and Wednesday with Tuesday being a rebound day after the pair found some support just above the 2.0500 area, but the pressure was to big and and we saw a weekly low at 2.0365 on Friday, a level that has proven once again to be significant support. After reaching 2.0365 the pair moved higher in the US session and traded above 2.0500 pointing to us that the retracement move might have come to an end. Cable needs to get closer to the 2.0650 area before one can be more confident that the down move is over. Conversely a new slip under 2.0500 will bring the 2.0365 support once again to our attention and a move towards that will certainly make us change our bias to the short side.