The best performer at the beginning of this week was undoubtedly the British pound which took a short glimpse above 1.40 amidst a more upbeat mood among investors regarding Brexit talks. The pound rose to a high of 1.4003 in Asia trading and we are still somewhat skeptical about the potential for further upward movement given an overbought situation. The strong uptrend in the GBP/USD depends not only on the weakness of the U.S. dollar, but also on positive U.K. data.
However, we were able to book a good profit yesterday by trading our long signal.
GBP/USD: Based on the pound’s general strength, we recommend sterling bulls to focus on a price range between 1.4110 and 1.3920. Below 1.3915 we anticipate deeper corrections towards 1.3850.
EUR/USD: The euro traded with a tailwind and rose towards the upper barrier of its current sideways trend channel. If the 1.23-barrier is significantly breached we expect further upside momentum driving the currency towards 1.2365. Current supports are seen at 1.2230, 1.2210 and 1.2165.
The German ZEW Survey is due for release at 10:00 UTC and could have a minor impact on the price action in the euro.
Here are our daily signal alerts:
EUR/USD Long at 1.2280 SL 25 TP 20, 40 Short at 1.2220 SL 25 TP 20, 40 GBP/USD Long at 1.4010 SL 25 TP 20, 40 Short at 1.3960 SL 25 TP 15, 40
We wish you good trades and many pips! Disclaimer: Any and all liability of the author is excluded.