EUR/USD, GBP/USD remain bid ahead of US NFP while EUR/GBP slips
Outlook on EUR/USD, EUR/GBP and GBP/USD ahead of Friday’s key US employment report.
EUR/USD bounces off early October low
The bounce off EUR/USD's $1.046 low has so far led to two consecutive days of gains with last week’s $1.0617 high, the May low and mid-September low at $1.0632 to $1.0636 remaining in sight.
A rise and weekly chart close this Friday above this resistance area would confirm at least a minor bottoming formation.
While this is not the case, the medium-term downtrend remains intact with the mid-November high, early and December low and January low at $1.0484 to $1.0444 acting as a key support area.
EUR/GBP side-lined above £0.8631
EUR/GBP's fall from its £0.8706 September peak took it to last week’s low at £0.8631, above which it has been range trading ever since.
Support below Wednesday’s low at £0.864 sits at last week’s low at £0.8631. Failure there could lead to the 55-day simple moving average (SMA) at £0.8604 being revisited.
Immediate resistance is to be found at Thursday’s £0.8691 high, a rise above which would likely engage the early October high at £0.8691. Further up meanders the 200-day SMA at £0.8705.
GBP/USD recovers further from near seven-month low
GBP/USD's recovery from its seven-month low at $1.2038 has taken the cross above its downtrend channel resistance line at $1.2178 with last week’s high at $1.2271 remaining in sight.
This level will need to be bettered for a medium-term bullish reversal to take shape.
Slips should find support around the 27 September low at $1.212 ahead of this week’s low at $1.2038. This low was made near the mid-March low at $1.2011 and the minor psychological $1.20 mark.
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