In today’s Forex Forecast, we discuss the technical outlook for EUR/GBP, EUR/USD and GBP/USD, with Steven Woodcock, Senior FX Analyst at Plutus FX.
EUR/GBP: Heading Higher
Woodcock notes how the EUR/GBP broke above the flag formation and is looking to head further higher. He mentions how the CFTC data goes well with the bullish view for the cross and believes 0.78 might be a possible upside target.
Sell cable when it looks strong
With GBP/USD trading quite well, Woodcock believes that we are still in a pullback stage. He mentions how this relates with the USD pullback towards support, but remains a range play. He remains a bear on the cross, looking for a decline towards 1.4950. Woodcock mentions how the cross exhibits a lot of false breaks, and further suggests selling the pair when it looks strong.
EUR/USD: Patience is the word
Woodcock notes that EUR/USD is now trading firm, but haven’t really gone up that well, it is only holding the levels. He further remains comfortable buying the single currency towards support awaiting a 2 figure move towards 1.1750-1.1850, where he would like to instil fresh shorts on the pair.
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