FXOpen
Despite the Federal Reserve's hawkish stance and the upcoming inauguration of Donald Trump, who has frequently discussed the possibility of new trade tariffs, EUR/USD and GBP/USD managed to find medium-term support last week. Both pairs are now attempting to recover toward recent highs.
GBP/USD
Last week, GBP/USD broke below the November low at 1.2480. However, the pair quickly rebounded above 1.2500, forming a bullish engulfing reversal pattern.
According to technical analysis, GBP/USD has the potential to rise further toward 1.2660–1.2730 if it can sustain levels above 1.2600. On the downside, a retest of 1.2470 could lead to a downward breakout, potentially driving the pair toward 1.2300–1.2400.
This week, trading GBP/USD requires consideration of the relatively empty economic calendar, with major investors staying out of the market. These factors could lead to sharp price swings and false breakouts.
Key Events Affecting GBP/USD Today:
- 15:30 (GMT+2): US Core Durable Goods Orders
- 17:00 (GMT+2): US New Home Sales
- 20:00 (GMT+2): Atlanta Fed GDPNow Indicator
EUR/USD
December has been challenging for EUR/USD buyers. Weak macroeconomic data and the ECB's rate cut have pushed the pair down to 1.0340. Late last week, the price briefly recovered above 1.0400 but dipped below this level again yesterday. Another test of 1.0330 may occur in the coming sessions. If this support level holds, EUR/USD could climb toward 1.0460–1.0520.
According to technical analysis, EUR/USD shows signs of a potential upward correction, provided the price can stabilise above 1.0450. On the daily chart, there is an inverted hammer pattern. Also, there is a possibility of a double bottom formation. A drop below 1.0330, however, would invalidate these patterns.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
Oracle (ORCL) Shares Fall Below $180
Yesterday, Oracle (ORCL) shares dropped by 5% following reports that investment firm Blue Owl Capital had withdrawn from financing a $10bn data centre project in Michigan.
The collapse of the deal raises questions over Oracle’s ability to meet its
Sterling Consolidates Ahead of the Bank of England Decision
Sterling is consolidating as markets await the Bank of England’s interest rate decision, while investors’ attention is gradually turning to tomorrow’s meeting of the Bank of Japan. The UK currency is moving cautiously, as markets have largely priced
Analysis of the Volatility Spike on the BTC/USD Chart
Yesterday, the BTC/USD chart saw sharp price swings during the US trading session:
→ first, Bitcoin rose by more than 3%;
→ shortly afterwards, it dropped by over 4%.
The main impulses unfolded within just a few hours and triggered liquidations