EUR/USD Technical View

Euro confirmed the bearish pattern formed on Tuesday and the pair fell sharply on Wednesday supported also by some dovish commentaries from and ECB banker. Yesterday’s range was over 250 points, we haven’t seen such a long candle since mid December, it broke through the closest intermediary support levels and only stopped and bounce back a little around the 1.4600 zone which is also the 61.8 Fibonacci line of the bigger move north from last year. A break below 1.4600 will confirm the current bearish momentum and will get us closer to the 1.4500 level, the next significant target and support level. Conversely a bounce back from here will bring the pair right back in the 1.4600/1.4835 congestion area.
Resistance Levels

• 1.5000– round number
• 1.4966- Nov 23rd high
• 1.4735 –Nov 9th High

Support Levels

• 1.4500- round number
• 1.4300 – Sept 30th High
• 1.4000 – Round number
• 1.3850 – July 24th High

GbpUsd Technical View

GbpUsd performed pretty much the same for two consecutive days this week, on Tuesday and Wednesday the pair failed to make a lower low and bounced from the 1.9550 support zone only to fall tight back in the afternoon; the exception is that on Wednesday it didn’t printed a higher high. So far today we have a range of over 110 points and have already tested yesterday’s high at 1.9720 but is now trading lower. This week has clearly been a consolidation one, where GbpUsd tried several times to break below 1.9550 and failed and also the area above 1.9700 proved to be tough resistance, fin order to see a bigger move we have to wait until we have a clear signal that either the above mentioned support or resistance level have a good chance of being broken, otherwise we recommend caution and patience on this pair.

Resistance Levels

• 2.1148 – Nov 9th High
• 2.1065 – Nov 7th High
• 2.0650 – July 24th High

• 2.0365 – September 12th High

Support Levels

• 2.0000 – Round number
• 1.9800 – Round Number
• 1.9670 – August 17th Low
• 1.9180