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Technical Outlook:
- EUR/USD testing recent highs, but could fall and range some more
- GBP/USD is also testing high-end of range around big area of resistance
EUR/USD is testing recent highs just over 11900, breakout or range some more? This morning it snuck above the July 31/August 6 peaks, but risk is high we see a failure. As we discussed in the webinar, a turn down with more horizontal work, though, could set the euro up for an even larger advance later on with a broader base, than if it were to break higher right here. As long as it stays within the confines of the upward channel since May, then the outlook is neutral to bullish. For now we will take a wait-and-see approach.
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EUR/USD Daily Chart (larger consolidation could do it some good)
GBP/USD is also pressing up against the top of the developing range. The tight pattern appears near the point of breaking out, but to confirm a sustained rise above all resistance (>13206) from 2014 to current is needed. There are trend-lines from 2014 and 2018 along with a pair of horizontal price points created just prior to the corona meltdown. A turn down from here and further congestion pattern, like EUR/USD, could do cable some good before trying to break out.
GBP/USD Daily Chart (pressing top of range, resistance)
For all the charts we looked at, check out the video above…
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—Written by Paul Robinson, Market Analyst
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