EUR/USD is hugging 1.10 in the aftermath of the Greek deal. GBP/USD enjoyed a rise following bullish comments from Carney. What’s next for these pairs?
The team at RBS looks at the charts:
Here is their view, courtesy of eFXnews:
RBS Techs maintains its bullish views on EUR/USD, and GBP/USD.
Starting with EUR/USD, RBS notes that it sustained above a key level of 1.0965, as weekly MACD formed a positive crossover, confirming the view that the correction may be over and an uptrend formation may start soon.
“This is also confirmed by daily oscillators, which are most reliable in a sideway market,” RBS adds.
Therefore, RBS holds the view for the currency to be forming a base and see 1.14-ish area re-tested in the near future with a break opening new targets at 1.1850, 1.2090 and above.
“However, if the 1.0965 support is broken on a sustained basis (on close), further weakness to 1.0847 and potentially 1.0700 and 1.0520 could be expected,” RBS argues.
Turning to Cable, RBS thinks that its bullish view gained confidence amid rejection of the area below 1.54 and a potential weekly bullish engulfing candlestick this week (a weekly close above 1.5551 is required).
Also RBS argues that as the price closes the bearish gap of 1.5575, this generates be a very strong bullish signal targeting 1.6070 and 1.6433
For lots more FX trades from major banks, sign up to eFXplus
By signing up to eFXplus via the link above, you are directly supporting Forex Crunch.
Share
