EUR/USD and GBP/USD Forecast - 28 April 2017

EUR/USD

The EUR/USD pair had a volatile Thursday session as the ECB released an interest rate decision, but more importantly had a news conference afterwards. The market seems a bit confused, so I believe that the market will continue to go higher. A gap below should continue to offer plenty of support, so I believe that the market will eventually continue to find buyers on dips. The 1.0750 level underneath continues to be supportive, and therefore I’m looking for some type a supportive candle between here and there to start going long. A breakout above the top of the consolidation of the last few trading sessions should send this market looking for the 1.10 level.

EURUSD

GBP/USD

The British pound rallied during the day again, breaking above the top of the hammer from the previous session. We have even made a fresh, new high, and it now looks as if the British pound will continue to try to grind to the upside. I have a longer-term target of 1.3450 as you probably know, and because of this it’s likely that the market will continue to be a “buy on the dips” situation. I believe that the 1.2750 level will offer massive support now, it’s only a matter of time before we find buyers on dips and therefore I look at this is a market that should continue to go higher. The 1.3450 level above continues to be resistance as far as I can see, because it was the top of the consolidation area that we had been in previously.

I believe that the inflationary pressures and the United Kingdom should continue, and with that being the case it’s almost impossible to think about selling. I believe that the market will be choppy, but given enough time the buyers should prevail as we have seen such a massive surge to the upside as of late.

GBPUSD

Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.