Outlook on EUR/USD, EUR/GBP and GBP/USD ahead of UK budget and Powell speech
EUR/USD, EUR/GBP and GBP/USD likely to be affected by UK budget and Powell speech in Congress.
EUR/USD targets the 55-day SMA
EUR/USD remains above its breached its December-to-March downtrend line and is expected to hold above its 200-day simple moving average (SMA) and tentative uptrend line at $1.0834 to $1.0827 whilst targeting the 55-day SMA and Tuesday's high at $1.0875 to $1.0876.
While Thursday's $1.0796 low underpins, the short-term uptrend remains intact.
EUR/GBP consolidates further still
Despite its recent minor corrective phase lower, EUR/GBP still has the £0.8573 to £0.8578 key resistance area in its sights while it stays above its 23 February £0.8529 low.
A rise and daily chart close above £0.8578 must be seen for the 200-day SMA at £0.8608 to be reached. Good support below £0.8529 sits between the July-to-August lows at £0.8504 to £0.8493.
GBP/USD looks bid ahead of UK budget
GBP/USD has shot up from Friday's low at $1.26 to Tuesday's $1.2735 high, a rise above which would target the $1.2772 to $1.2786 resistance area.
This bullish view will remain valid while Friday's low at $1.26 underpins. Minor support below the 55-day SMA at $1.2675 lies at the late-January $1.2641 low ahead of the more significant $1.2612-11 support zone.
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