Technical Outlook For EUR/USD And GBP/USD

With some major markets are still being shut for holidays we will start slowly with pending low-risk entries which are based on our technical analysis.

EUR/USD – Consolidation with a slight uptick

The euro trended slightly upwards during the holidays but remained within a consolidation range between 1.1390 and 1.1270. We believe that the euro could test the resistance area around 1.1410 before heading south toward 1.1260. Sell attempts around 1.14 might prove profitable. Current supports are however seen at 1.1250 and 1.12. Below 1.1180, we favor an even more bearish stance with a lower target at 1.10. For the sentiment to shift in favor of the bulls we would need to see a sustained break above 1.1425.

GBP/USD – The end of the bull-run?

As expected in the middle of December we saw the cable recovering its losses towards 1.35. Now that the pair tested the 1.35 and even the 1.3550-area, we may see bearish momentum accelerating again, which could also be due to an overbought situation in larger time frames.

If, however the current support at 1.34 holds, we could see a run for 1.36 and possibly even 1.3670 but this depends on the risk sentiment. If 1.34 breaks, we expect the cable to fall back towards 1.3250.