Forecasts for the EUR/USD and the GBP/USD:
- euro The British Pound is starting the week on a positive note, supported by improved market sentiment
- U.S. dollar Weakens amid lower safe-haven demand
- This article analyzes the key EUR/USD And GBP/USD Technical levels to watch in the near term
Recommended by Diego Coleman
Forex for beginners
Most read: Gold prices fell as yields rose, mood improved and bullish momentum has run out for the time being
The Euro and the British Pound started the week on a bullish note, as it rose moderately against the US dollar due to a drop in safe-haven demand. As Wall Street close approaches, EUR/USD is up 0.33% to 1.0795, while GBP/USD is up 0.5%, trading slightly below the 1.2200 handle.
The higher beta coins were supported by the positive mood following the news that First Citizens Bancshares has agreed to acquire parts of the bankrupt Silicon Valley Bank, a move that may help reduce concern about stress in the US banking system.
In addition, leaked reports that the US authorities may consider expanding emergency lending programs to support troubled regional financial institutions in need of liquidity contributed to the improvement in sentiment.
With the recent moves, both EUR/USD and GBP/USD are trading near key levels. Below is an analysis of each pair from a technical point of view.
|
change in |
Longs |
Shorts |
Hey |
| Daily | 18% | 10% | 13% |
| weekly | 15% | -9% | 1% |
Technical analysis of the EUR/USD pair
After Monday’s advance, the EUR/USD pair is temporarily approaching the trend line resistance near the psychological level of 1.0900. Prices from that area were rejected last week, so a similar result in another test cannot be ruled out. In the event of a pullback, technical support can be seen around the 50-day moving average, followed by 1.0630.
Conversely, if the bulls manage to push the pair above the 1.0900 barrier successfully, we may see a move towards the February high around 1.1035. For more strength, the focus moves to 1.1200.
Technical chart of the EUR/USD pair
EUR/USD chart set up using TradingView
|
change in |
Longs |
Shorts |
Hey |
| Daily | 2% | 16% | 9% |
| weekly | 13% | -6% | 2% |
Technical analysis of the GBP/USD pair
After the recent rally, GBP/USD is validating the cluster resistance located around 1.2300 area. If this barrier is breached in the upcoming sessions, the bulls can launch an attack on 1.2450, the 61.8% Fibonacci retracement of the 2022 drop, which is also in line with the January and December peaks.
On the flip side, if prices are rejected from current levels and start correcting lower, the initial support is around the 50-day SMA. Below, the next floor of interest can be found at 1.1960, followed by 1.1900.