GBPUSD

  • Sterling’s rebound in Asia from 1.4888 (76.4% of Apr-Jun rally) on Friday, followed by a failure to sustain above the falling channel resistance and a fall back to 1.4886 levels could have reinforced the bears.
  • However, an erratic move amid thin volumes has pushed the spot higher to 1.4925 levels. Still, the bearish action on Friday is likely to ensure the pair is met with fresh offers anywhere in the range of 1.4930 (Channel resistance)-1.4950 (Friday’s high).
  • Thus, a move back to 1.4888 could be seen. A break lower could see the pair test 1.4739 (Apr 1 low).


EUR/USD Analysis: Bearish below 1.0890

EURUSD

  • Euro’s repeated failure to take out 200-DMA last week and sustain above 1.10 pushed the currency to a low of 1.0803 levels on Thursday.

  • A minor correction is underway from Friday, but the pair still trades below 1.0890 (38.2% of 1.1495-1.0517).

  • A failure to take out 1.0890 could push the pair back to 1.08 levels.On the other hand, an hourly close above 1.0890 could see the pair rise to 1.0950-1.0960 and lead to a formation of head and shoulder on the hourly chart.

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