Both EURUSD and GBPUSD Looking More Negative in Broader Ranges

Technical Analysis

Both EURUSD and GBPUSD Looking More Negative in Broader Ranges

EURUSD recovery attempts once again rejected after the ECB Meeting on Thursday 8th September and with general USD strength coming through on Friday (9th). This keeps the bias for a weaker EURUSD within a still range theme.

A shift in tone from generally resilient and positive for GBPUSD over the past week, with a roll back lower to simply reinforce the broader range theme (evident post-Brexit). Moreover, this lends a negative bias in the n0on-trend environment into mid-September.

EURUSD – Negative Tone

A negative tone emerging Friday with the push below 1.1224 support after whipsaw activity Thursday through the ECB for a negative Shooting Star pattern, to shift to a negative tone into Monday.

For Monday:

  • We see a downside bias for 1.1197; break here aims for 1.1138 and 1.1121.
  • But above 1.1285 opens risk up to 1.1327.

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 – Downside Risks

A more notable setback Friday to better probe below 1.3287 and 1.3248 supports, for a small top and a shift to a negative bias into Monday.

The immediate risk has for now faded for an intermediate-term bullish shift above 1.3534 into mid-September.

For Monday:

  • We see a downside bias for 1.3238; break here aims for 1.3200 and 1.3127.
  • But above 1.3336 opens risk up to 1.3375.

On an intermediate-term outlook, we currently 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.

Daily GBPUSD Chart


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