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GBPUSD Upside and EURUSD Downside Within Range Environments

Technical Analysis

GBPUSD Upside and EURUSD Downside Within Range Environments

Differing outlooks for the GB Pound and the Euro against the US Dollar over the past 1-2 weeks, reinforced by price action seen Friday after the US Employment report.

GBPUSD now indicates a bullish tone within a range environment, whilst EURUSD maintains a negative consolidation bias within a non-trend phase.

GBPUSD –Upside Risks

Still a broader range theme, but a strong base structure has built through from mid/latter August and the surge higher to start September also lends a positive tone into Monday.

For Today:

  • We see an upside bias for 1.3352, 1.3372 and 1.3384; break here aims for 1.3449, maybe 1.3478/81.
  • But below 1.3236 opens risk down to 1.3127.

On an intermediate-term outlook, we still see a range theme into mid-September.

Short/ Intermediate-term Range Parameters: We see a range defined by 1.2791 and 1.3534.

Range Breakout Challenge

  • Upside: Above 1.3534 aims higher for 1.3637 and 1.3899.
  • Downside: Below 1.2791 sees risk lower for 1.2565, 1.2000 and 1.1880.

4 Hour GBPUSD Chart
gbpusd

EURUSD – Negative Bias

A topping structure in latter August was reinforced by the spike higher and setback Friday (from 1.1252) to leave a still negative tone into Monday.

For Today:

  • We see a downside bias for 1.1121/1.1109; break here aims for 1.1068, maybe 1.1044.
  • But above 1.1200/08 opens risk up to 1.1252.

The late July push above 1.1189 saw a shift to an intermediate-term, neutral range theme.

Short/ Intermediate-term Range Parameters: We see the range defined by 1.1428 and 1.0950.

Range Breakout Challenge

  • Upside: Above 1.1428 aims higher for 1.1616 and 1.1714.
  • Downside: Below 1.0950 sees risk lower for 1.0910, 1.0823/21, 1.0777/08 and maybe 1.0520.

4 Hour EURUSD Chart
gbpusd

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