EUR/USD, EUR/GBP and GBP/USD look top heavy
EUR/USD, EUR/GBP and GBP/USD continue to display a short-term bearish bias.
EUR/USD capped by January high, revisits breached resistance line, now support
EUR/USD continues to be capped by the January peak at $1.1482 and did a ‘return to point of breakout’ by dipping back to the breached 2021-to-2022 downtrend line at $1.1402.
Slightly further down the late November and December highs at $1.1386 to $1.1382 may act as support as well as the mid-point of Thursday’s long ‘body’ of its candle at $1.1368. The ‘body’ shows the distance between the open and the close of a candle.
The January and current February highs at $1.1382 to $1.1383 will need to be exceeded for EUR/USD to continue its ascent and for the next higher October and 5 November lows at $1.1513 to $1.1529 to be reached.
EUR/GBP is to come further off its £0.8478 current February high
EUR/GBP looks short-term toppish and is likely to glide back towards the 55-day simple moving average (SMA), January high and 23 December low at £0.8424 to £0.8416. This support zone may well underpin.
Resistance above Monday’s high at £0.8478 can be found along the 2020-to-2022 downtrend line at £0.8492 and the 200-day SMA at £0.8514.
GBP/USD weighs on the $1.3513 to $1.349 support zone
GBP/USD's advance from its late January low at $1.3365 has so far taken it to last week’s high at $1.3628 before tumbling back to the mid-November high, 38.2% Fibonacci retracement and 6 January low at $1.3513 to $1.349.
A drop through $1.349 may lead to the next lower $1.3441 to $1.3431 support area to be touched. It encompasses the early as well as the 25 and 26 January lows and the 55-day SMA. Further down lies the January trough at $1.3359.
Resistance above the 50% retracement of the January slide at $1.3552 and the 18 January low at $1.3573 can be found along the 61.8% Fibonacci retracement and one-month resistance line at $1.3599 to $1.3602.
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