Technical Analyst, Saxo Bank Group
Summary: GBPUSD breaking higher eyeing 1.2745
EURGBP could be reversing uptrend
EURUSD testing key resistance level
Dollar Index likely to test key support at 104
GBPUSD closed above strong resistance at around 1.2546 Friday and has continued the upwards move this morning
RSI has made new highs thus cancelling its divergence indicating likely new higher GBPUSD levels. in coming days and weeks.
A move to the 0.618 retracement at 1.2720 and the resistance at around a1.2745 seems highly likely
To reverse the bullish trend a close below 1.2445 is needed
EURGBP has broken below its lower rising trendline and is now back below 200 DMA. Support at around 0.8640, a close below and an RSI closing below 40 the bearish scenario is confirmed with potential down to June-August lows around 0.85
Close A break above 0.8765 will extend the current bullish trend with resistance at around 0.8820-0.8875.
EURUSD is once again testing the 0.681 retracement at 1.0960 and last week’s peak at 1.0965. A close is likely to lead to a bullish move to the 0.786 retracement at around 1.11
There is currently minor divergence on the RSI but if RSI is closing above the horizontal blue line it will be cancelled paving the road for higher EURUSD levels
A close below 1.0850 the bullish trend is set to reverse with a bearish move to 1.08-1.0762 to be likely
The Dollar Index key support at around 103 seems likely to be tested once again. A close below there is no strong support until around 101.62
The 0.618 retracement at around 102.21 will offer some support, however.
A close above 104.12 will demolish the bearish picture and a close above 104.44 is likely to result in a trend reversal
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