EUR/USD, EUR/GBP and GBP/USD on hold while awaiting a batch of economic releases due later this week

EUR/USD trades back towards the middle of its channel

Last week EUR/USD came off its $1.1483 high and slid back towards the middle of its November-to-January channel.

Today the late November and December lows at $1.1387 to $1.1383 are in focus. While this support zone underpins, however, an upside bias remains in play with the October-to-early-November lows at $1.1513 to $1.1539 representing upside targets. These are likely to stall the currency pair, though. Should this not be the case, the advance may extend to the September low at $1.1563.

Minor support below $1.1383 can be found between the 8 and 16 December highs at $1.1365 to $1.186.

EUR/GBP continues to oscillate around the 55-day simple moving average (SMA) at £0.8347

EUR/GBP, like last week, still range trades above this year’s low to date at £0.8324 and keeps coming back to the 55-period SMA on the 240-minute chart at £0.8347 with the £0.8366 to £0.8373 resistance zone providing a ceiling for the cross. This comes as no surprise since it has already acted as support late last year and as resistance early this year.

While the next higher early January high at £0.8418 isn’t exceeded, the longer-term September-to-January downtrend remains valid.

Only a fall through the recent low at £0.8324 would put the December 2016, April 2017, December 2019 and February 2020 lows at £0.8313 to £0.8277 on the map. It is where key long-term support can be found.

GBP/USD continues to play with the 200-day SMA at $1.3685

Last week GBP/USD rallied to $1.3749 before consolidating slightly and trading back along the 200 day SMA at $1.3685. The steep uptrend is very much intact, though, with the two-month uptrend line coming in at $1.3657. Further down minor support can be seen at the early October highs at $1.3658 to $1.3648.

Once the 23 September high at $1.3751 has been bettered, the October high at $1.3835 will be in focus. Further up beckons the September peak at $1.3913 around which the currency pair is likely to at least take a short-term breather.