Range-Bound Market

Both EUR/USD and GBP/USD have been in range trading mode in recent days. Thus, profitable breakouts were lacking. However, the muted price action could extend into this new week unless we see price breakouts above or below the following crucial price levels which could ignite fresh momentum.

EUR/USD: Bullish: Above 1.0610, we pencil in a next target at 1.0640. Above 1.0660, the next target is at 1.0760. Bearish: Below 1.0480, we focus on a dip towards 1.04. Below 1.0380, next targets are at 1.0350 and 1.02.

GBP/USD: Bullish: Above 1.2325 we anticipate a test of 1.24. Above 1.2430, our focus shifts to 1.26. Bearish: Below 1.2140, next lower targets are seen at 1.20 and 1.1920.

What is in store for the week ahead? The focus will be on the Federal Reserve’s preferred inflation gauge, the PCE index due for release on Thursday. Furthermore, we have speeches from various central bank heads due on Wednesday.

Have a good start to the new week!

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