EUR/USD
The EUR/USD pair initially tried to rally during the session on Thursday, but found enough resistance near the 1.1250 level to turn things around and form a bit of a shooting star. However, we are within consolidation, so I do not expect any type of serious breakdown. I believe that the buyers will return, and with this being the case I think that the market will continue to find buyers underneath, so given enough time I expect this market to continue going higher. A break above the recent highs should send this market looking for the 1.13 level, and I have a longer-term target of 1.15. Even if we did breakdown, I believe that the 1.10 level underneath should offer significant support as well, so therefore I don’t really have any interest in selling and I believe it’s only a matter of time before the buyers take over every time we dip.
GBP/USD
The British pound initially rally during the day on Thursday, but found the 1.30 level to be far too resistive to continue going higher. However, I do see that there is an uptrend line just below, so I think it’s only a matter of time before the buyers get involved. I believe the 1.29 level will also offer support, as we continue to rise in the channel that is marked on the chart. Beyond that, I believe that a breakdown below the 1.29 level should send this market looking for the 1.2750 level underneath, which was previously resistive, and now it should be massively supportive. I believe that eventually the market will try to reach towards the 1.3050 level above, and once a break above there we will grind our way towards the 1.3450 level which is massive resistance on longer-term charts. Until then, look at pullbacks as potential value.
