Euro and Pound outlooks mixed as EU-UK talks continue (EURUSD and GBPUSD forecasts)

Intermediate
Published October 28, 2020 by:
Share:
  • A mixed US Dollar theme over the past 24 hours across Forex markets, echoing the more indecisive tone over the past 1-2 weeks as the correlation with stock indices has shifted.
  • We still see a positive technical tone and upside risks for EURUSD having last week neutralised the Head & Shoulders topping pattern with the push above 1.1870 up to 1.1881.
  • You can learn more about Head & Shoulders topping patterns here.
  • But the Pound remains still vulnerable against the US currency, with a negative GBPUSD forecast for today whilst below 1.3080 (but shifting positive above this level).

EURUSD day trade outlook: Upside bias

A slightly negative consolidation on Tuesday to prod this morning below our flagged support at 1.1785, but whilst holding at 1.1751 we hang onto upside forces from last week’s strong advance above key 1.1870 resistance (to shift the intermediate-term outlook to a broader range, seen as 1.1917 to 1.1687), to keep the bias to the upside Wednesday.

Day trade setup

  • We see an upside bias for 1.1839; a break here aims for 1.1881, 1.1900 and maybe critical 1.1917.
  • But below 1.1751 opens risk down to 1.1687/83.

EURUSD intermediate-term outlook

The latter October push above 1.1870 signalled an intermediate-term shift to a broader range seen as 1.1917 to 1.1687, having neutralised the bigger Head & Shoulders Top pattern.

  • Upside risks: Above 1.1917 sets an intermediate-term bull trend to target 1.2000/11, 1.2140 and maybe 1.2413.
  • Downside risks: Below 1.1687 sets an intermediate-term bear trend to target 1.1539, 1.1369 and maybe 1.1166.
8 Hour EURUSD Chart
8 Hour EURUSD Chart

GBPUSD day trade outlook: Bias only just lower

A Tuesday rebound to just prod above our 1.3075 resistance to the quickly stall back from 1.3080, and whilst below here we hang onto negative pressures from the setback from last week from 1.3177 to 1.2993, to just keep the threat lower for Wednesday.

Day trade setup

  • We see a downside bias for 1.2993 and 1.2970; a break here aims for 1.2910 and maybe 1.2861.
  • But above 1.3080 opens risk up to 1.3122 and possibly 1.3177.

GBPUSD intermediate-term outlook

The early October push above 1.3007 signalled an intermediate-term shift to a range, seen as 1.3239 to 1.2687/75.

  • Upside risks: Above 1.3239 sets an intermediate-term bull trend to aim for 1.3359, 1.3486/1.3515 and maybe 1.3711.
  • Downside risks: Below 1.2687/75 sets an intermediate-term bear trend to aim for 1.2644, 1.2480 and maybe 1.2251.
8 Hour GBPUSD Chart
8 Hour GBPUSD Chart
Author

Editor in chief

Steve Miley is the Market Chartist and has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Mar... Continued

Comment on this video

Your email address will not be published. Required fields are marked *

Latest Related News

Sterling Soars

Published February 22, 2021 by:
GBPUSD 12 month chart
GBPUSD has broken the corrective channel as the 200-day moving average is surpassedThe 50-day moving average is proving harder to breakThe economy is staging a recovery; debt is manageableTaxes will rise, but the public will understand If one looks at the long chart of GBPUSD over the past nine-years, shown below in Figure 1, one can see the spot price has recently edged passed the… Continued

Higher yields globally see stocks dip, US Dollar weakness resumes

Published February 22, 2021 by:
Yellen
Macroeconomic/ geopolitical developments Another relatively quiet week for financial markets, with the main central bank activity from the Reserve Bank of Australia (RBA) and the Federal Open Market Committee (FOMC) releasing their prior Meeting Minutes, with minimal impact on markets.Macroeconomic data releases were on the lighter side with the global Markit Flash Manufacturing and Services PMI releases on Friday also failing to ignite financial markets.Earnings… Continued

Broad US Dollar weakness resumes

Published February 22, 2021 by:
Forex Videos
The Pound , Aussie and Kiwi have no resistance (GBPUSD, AUDUSD, NZDUSD forecasts)US Dollar-CAD threatens to breakdown (USDCAD forecast)Euro-Pound continues its descent (EURGBP forecast)  Continued

Broad US Dollar weakness and the Pound stays strong, in the Forex Zone

Published February 19, 2021 by:
Current Market Analysis
EURUSD trying to negate the intermediate-term down trendGBPUSD stays strong with prod through key psychological barrier at 1.40AUDUSD hits new, multi-month cycle highNZDUSD starting to look more positive USDCAD bear threatUSDJPY correcting lower Continued

US Dollar 2021 strength is trying to resume

Published February 12, 2021 by: FxExplained
Current Market Analysis
The US dollar has seen significant gains versus major currencies in early 2021This was assisted by higher US yields in anticipation of a large, Democrat-driven fiscal boost Corrective US Dollar losses seen over the past week have started to stallThis has seen the US Dollar see notable turning points and rally against the major currencies over the past 24 hoursHere we focus on EURUSD, GBPUSD, AUDUSD,… Continued

Forex Brokers in your location


SIGN UP

72% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

67% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

76.4% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP