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EURUSD and GBPUSD Bearish Threats Intensifying

Technical Analysis

Both the Euro and Great British Pound pushed lower into the end of November and are poised to reinforce their bearish outlooks versus the UUS currency.

The primary bear themes for both EURUSD and GBPUSD that have been evident into the final quarter of 2016, favours more bearish signals into December and for increased downside threats into year-end.

EURUSD

A probe lower Friday for a negative end to another negative week, after another new setback low Wednesday, to leave a bear bias Monday.

The previous break of 1.0658 reinforced the aggressive October bear break below 1.1085, which leaves a bearish outlook for November.

For Monday:

  • We see a downside bias for 1.0565; break here aims for 1.0520.
  • But above 1.0690/0710 opens risk up to 1.0763/76.

Short/ Intermediate-term Outlook – Downside Risks:

  • We see a more negative tone with the bearish threat to 1.0520.
  • Below here targets 1.0459 and 1.0206.

What Changes This? Above 1.1395 signals a neutral tone, only shifting positive above 1.1495.

Daily EURUSD Chart

EURUSD

GBPUSD

A more significant setback Friday, close to the November and cycle low (1.5024), having been capped by 1.5156 as expected through midweek, for a bear bias into Monday.

Moreover, previous bear signals from Q4 to push down to 1.5105 and 1.5024, leave a still bearish theme for late November.

For Monday:

  • We see a downside bias for 1.5024; break here aims for 1.5000 and maybe 1.4955.
  • But above 1.5065/70 opens risk up to 1.5156.

Short/ Intermediate-term Outlook – Downside Risks:

  • We see a negative tone with the bearish threat to 1.5000 and 1.4856.
  • Below here targets 1.4701 and 1.4566.

What Changes This? Above 1.5509 signals a neutral tone, only shifting positive above 1.5659.

Daily GBPUSD Chart

GBPUSD

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