Not much has changed in the price development of the EUR/USD and GBP/USD Wednesday.
While the pound traded slightly higher against the U.S. dollar on the back of higher U.K. inflation, the euro remained confined to a very small trading range between 1.1835 and 1.18.
Is it time for a breakout? Given the sluggish price development in recent days we keep tabs on potential price breakouts providing bigger moves and thus larger gains for traders. Today we will have U.S. retail sales scheduled for release at 12:30 UTC, a report that could have an impact on the greenback.
Let’s take a brief look at the technical picture:
Above 1.1825 we expect the pair to test the 1.1830-40 area again. Euro bulls should watch out for a break above 1.1860 that could lead to a test of 1.1870-80. A bearish breakout, on the other side, could start with a dip below 1.1790. A lower target is seen at 1.1750-40.
The cable holds above 1.38 and thus, chances are still in favor of a bullish move towards 1.39 and 1.40. For the bears to regain control, we must need to see a break below 1.3780.
We will watch out for rise above 15735 in order to anticipate more gains towards 15850. Below 15620, we expect the index to fall towards 15550 and possibly even 15400.
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