EUR/USD Technical View

Euro continued its north trip, although yesterday’s price action formed an inside bar we have seen the pair take Wednesday’s high by a few pips to establish a new one at 1.4735. Once above the 1.4700 the bullish momentum has slowed down as many bullish traders took profits and the bears had new reasons to open new trades, the area just above 1.4700 represents a resistance zone and breaking higher might take some time. Looking at the daily chart below we can see that the pair is in overbought territory and a repositioning of the players is not out of the question, with that in mind if the pair slips below 1.4700 we should change focus towards the 1.4600 area which combined with an up sloping trendline should provide consistent support.

Resistance Levels

• 1.5000– round number
• 1.4728 –Nov 7th High
• 1.4500- round number

Support Levels

• 1.4300 – Sept 30th High
• 1.4000 – Round number
• 1.3930 – September 13th high
• 1.3850 – July 24th High

GbpUsd Technical View

GbpUsd put in another green day on Thursday, and as it has used us lately we are seeing it trading at record levels, the high on the chart is 2.1140 just a small push below the 2.1185 level which we mentioned as a bullish target in Thursday intraday commentary. The pair has reached an overbought status and also found additional resistance at a trendline that marks the upper part of the up sloping channel we’ve had for a few months. A failure to break and stay above 2.1100 will give bears a new opportunity to add new trades in the hopes that this bullish trend has come to an end. So far the bullish sentiment is still strong but we should pay close attention to see whether the pair still has enough energy to move higher; conversely we should start looking for possible retracement targets that can offer a good support base.

Resistance Levels

• 2.1141 – Nov 9th High
• 2.1065 – Nov 7th High
• 2.0893 –Nov 2nd High

Support Levels

• 2.0650 – July 24th High

• 2.0460 – August 3rd High
• 2.0365 – September 12th High
• 2.0200 – Round number