EURUSD and GBPUSD Re-Energizing Bullish Themes


  • Both the Euro and GB Pound have produced significant upside moves in late June, primarily driven by hawkish comments by ECB President Draghi and BoE Governor Carney.
  • For EURUSD this has seen a push above the peak from the US Presidential Election result in November 2016 at 1.1300, indicating a more bullish tone at least into July.
  • In the case of Cable (GBPUSD), a more negative bias has been rejected, rebounding from ahead of 1.2513, with a still more bullish theme threatened, which would be signalled above 1.3048.

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EURUSD – Bullish trend re-energised

An erratic session on Wednesday, but the setback held initial support at 1.1272, Whilst the push still higher on the session reinforces Tuesday’s aggressive rally through the November spike high (from the US Presidential Election) at 1.1300, keeping the risk higher again for Thursday.

Furthermore, this price action reinforces the intermediate-term bullish outlook into July.

For Today:

l We see an upside bias for 1.1391; break here aims towards 1.1428 and 1.1447, maybe even up to 1.1500.

l But below 1.1291 targets 1.1245 opens risk down towards 1.1180.

Intermediate-term Outlook – Upside Risks:

l Whilst above 1.1107, we see a positive tone with the bullish threat to 1.1366.

l Above here targets 1.1428/47, 1.1616 and 1.1714.

What Changes This? Below 1.1107 signals a neutral tone, only shifting negative below 1.0837.

Daily EURUSD Chart


GBPUSD – Bull trend intact

A more bullish tone as we indicated in our last report with a push-up through resistance in the 1.2890/2900 area to hit our 1.2964/78 target area, maintaining the bullish tone from the significant push higher Tuesday and leaving the threat still higher for Thursday.

For Today:

l We see an upside bias through 1.2972/78; break here aims for 1.3015 and 1.3048

l But below 1.2860 opens risk down to 1.2792.

Intermediate-term Outlook – Upside Risks:

l We see a positive tone with the bullish threat to 1.3121.

l Above here targets the 1.3455/3534 area.

What Changes This? Below 1.2513 signals a neutral tone, only shifting negative below 1.2363.

4 Hour GBPUSD Chart


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