Dukascopy Bank Team
Dukascopy Bank SA
EUR/GBP 1H Chart: Channel Up
Comment: The British Pound is weakening across the board, giving the Euro a good opportunity to outperform it. The main reason to be bullish the common currency, however, is the fact that the pair has recently established an ascending channel, and at the moment it is near the lower boundary of the pattern. In addition, the four-hour indicators are giving ‘buy’ signals and the market is overcrowded with bears (65% of positions are short). Consequently, we expect the price to rebound from 0.76 and start a rally, which will likely extend up to 0.78 before there is a significant retracement. Meanwhile, if the rate dips beneath the trend-line at 0.76, the target will be the 200-hour SMA and daily S3 at 0.7530.
GBP/USD 4H Chart: Channel Down
Comment: Since the last week of December, the Cable has been trading within a narrow but at the same time solid channel. Being that the studies are either bearish or mixed and the Sterling is overbought (63% of positions are long), there are no reasons to expect a reversal but one—the price is at the 2010 low. However, the initial reaction after the test of the historically important level was shallow, meaning demand near 1.4230 is unlikely to be enough to stop the sell-off, and the near-term rallies should be capped by the monthly S2 and the falling trend-line at 1.4390/70. Below 1.4230, the currency pair should aim for support at 1.4050, followed by the 2009 low at 1.35 dollars.
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
Recommended Content
Editors’ Picks
AUD/USD: Uptrend remains capped by 0.6650
AUD/USD could not sustain the multi-session march north and faltered once again ahead of the 0.6650 region on the back of the strong rebound in the Greenback and the prevailing risk-off mood.
EUR/USD meets a tough barrier around 1.0800
The resurgence of the bid bias in the Greenback weighed on the risk-linked assets and motivated EUR/USD to retreat to the 1.0750 region after another failed attempt to retest the 1.0800 zone.
Gold eases toward $2,310 amid a better market mood
After falling to $2,310 in the early European session, Gold recovered to the $2,310 area in the second half of the day. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.5% and helps XAU/USD find support.
Bitcoin price coils up for 20% climb, Standard Chartered forecasts more gains for BTC
Bitcoin (BTC) price remains devoid of directional bias, trading sideways as part of a horizontal chop. However, this may be short-lived as BTC price action consolidates in a bullish reversal pattern on the one-day time frame.
What does stagflation mean for commodity prices?
What a difference a quarter makes. The Federal Reserve rang in 2024 with a bout of optimism that inflation was coming down to their 2% target. But that optimism has now evaporated as the reality of stickier-than-expected inflation becomes more evident.