In today’s Forex Outlook, we discuss the outlook for EUR/USD, GBP/USD and EUR/GBP, with Eddie Tofpik, Head of FX at ADM Investor Services.

On the Fed rate hike expectations, Tofpik comments now the markets expect a 50%+ chance of a mid-2016 hike, but cautions that the Fed will do what they want to do to prove most number of people wrong.

EUR/USD: Heading higher

Taking a look at the technical charts for the single currency, Tofpik notes that the congestion area around 1.12-1.1250 gave the EUR/USD impetus for the move higher. With the Fed rate hike expectations moving away into 2016, the cross sees further upside potential, according to Tofpik.

The key resistance to the upside can be found at 1.1637.

GBP/USD: Reversal Monday failed?

Tofpik notes how the red candle on Monday was a key reversal down in GBP/USD but the cross went back up again, having taken down a key support earlier.

On the interest rate hike, Tofpik believes that it is far unlikely that the Bank of England will hike before the Federal Reserve.

EUR/GBP: Going bullish

Tofpik says that EUR/GBP remains the most interesting pair, and while technicals disagree with the fundamentals, the inverse head and shoulder formation on the charts suggests the pair will likely continue to break higher.

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