Euro and Pound Pairs: Setting Fresh Targets and Prices for the Week Ahead
EUR/USD and GBP/USD: Analysis for the Upcoming Week
EUR/USD Analysis:
The EUR/USD pair opened the week on a bullish note, breaking through resistance at 1.1800 and pushing towards the next key level at 1.1850. The positive momentum was driven by a weaker US dollar and improving risk sentiment in the market. However, as the week progressed, the pair faced some resistance near the 1.1850 level, leading to a minor pullback.
Technical analysis suggests that the EUR/USD pair is trading within an ascending channel, indicating a bullish trend in the near term. The Relative Strength Index (RSI) is also in a bullish zone, supporting further upside potential. If the pair manages to break above the 1.1850 resistance, the next target would be the 1.1900 level.
On the downside, the 1.1800 level is likely to act as immediate support. A break below this level could trigger a deeper correction towards the 1.1750 support area. Overall, the outlook for the EUR/USD pair remains bullish as long as it stays above the 1.1750 support level.
GBP/USD Analysis:
The GBP/USD pair started the week with a positive tone, breaking above the 1.3900 resistance level and reaching a high near 1.3950. The bullish momentum was supported by the Bank of England’s hawkish comments and optimism surrounding the UK economic recovery. However, towards the end of the week, the pair faced some selling pressure near the 1.3950 level, leading to a slight pullback.
Technical analysis shows that the GBP/USD pair is trading within an upward sloping channel, indicating a bullish bias. The Moving Average Convergence Divergence (MACD) indicator is also in positive territory, further confirming the bullish outlook. If the pair manages to clear the 1.3950 resistance, the next target would be the 1.4000 psychological level.
On the downside, the 1.3900 level is expected to provide initial support. A break below this level could trigger a corrective phase towards the 1.3850 support area. Overall, the GBP/USD pair remains well supported as long as it holds above the 1.3850 support level.
In conclusion, both the EUR/USD and GBP/USD pairs are trading with a bullish bias in the near term. Traders should monitor key resistance and support levels for potential trading opportunities during the upcoming week.