Daily Forecast - 26 February 2015
GBPUSD
GBPUSD key to direction is strong resistance at 1.5545/50. Despite yesterday's strong breakout there is a good chance of a high for the day here. Shorts need a stop above the 100 day moving average at 1.5570. Be ready to go with a break higher using 1.5550 as support to target 1.5585 then trend line resistance at 1.5610/20.
The pair are severely overbought now & failure to beat 1.5545/50 targets 1.5490/85. This could hold initially but a break lower meets good support at 1.5460/055. Try longs with stops below 1.5430. Be ready to go with a break lower using 1.5460 as resistance for a move towards excellent short term support at 1.5412/08. A low for the day expected but longs need stops below 1.5490.
EURUSD
EURUSD first resistance at 1.1355/60 but above here look for a retest of strong resistance at 1.1435/40. Try shorts with stops above 1.1460. Just above we run in to resistance at 1.1484/98. It is only above here that barriers are removed for a retest of February highs at 1.1525/32. A high for the day would be expected if we reach this far so try shorts with a stop above 1.1550.
Holding below 1.1350 targets 1.1320/15 then trend line support & February low at 1.1280/70. Try longs with stops below 1.1255. A break lower then targets 1.1230/25 & 1.1195/90. Just be aware that further losses would risk a retest of January lows at 1.1113/1.1098.
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