Bounce in EUR/USD continues while EUR/GBP slips and GBP/USD rises
Quiet trading ahead for EUR/USD, EUR/GBP and GBP/USD as US shut for President’s Day.
EUR/USD still bounces off four-month low
EUR/USD's recovery off last week's $1.0695 low is still targeting the December-to-February downtrend line at $1.0796 above which sits the 5 February high at $1.0805 which may cap again, though. While this is the case, the medium-term downtrend will stay intact.
A rise and daily chart close above $1.0805 would target the 200-day simple moving average (SMA) at $1.0827.
Potential slips are expected to find support around the 16 February low at $1.0733.
EUR/GBP's recovery off five-month low stalls
EUR/GBP's bullish reversal off last week's £0.8499 low and rise above the two-month downtrend line is reinforced by the positive divergence on the daily relative strength index (RSI) which accompanied the low. Nonetheless, the pair is seen giving back some of its recent gains as the pound sterling appreciates.
A rise and daily chart close above the 6 February high at £0.8573 still needs to ensue for bullish trend reversal to be confirmed. In this case the 200-day SMA at £0.8587 would be back in focus.
Support below Thursday's £0.8536 low sits between the July-to-August lows at £0.8504 to £0.8493.
GBP/USD bounces off its uptrend line
GBP/USD has finally managed to bounce off its October-to-February uptrend line and 200-day SMA at $1.2564 to $1.2554. While the early-February low at $1.2519 holds further sideways trading is to be seen.
Resistance can be found at the 7 February $1.2642 high and also along the 55-day SMA at $1.2666.
The bearish medium-term trend will stay intact while the cross remains below its $1.2691 Tuesday peak.
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