EURUSD and GBPUSD Stay Bullish

  • Both the Euro and the GB Pound have retained their intermediate term bullish outlook into May, despite erratic consolidation over the past week.
  • For EURUSD, the push in April through 1.0906 signalled a more bullish theme on an intermediate time viewpoint and sets the risk for still higher price action into the second half of May and potentially beyond.
  • For GBPUSD, the multi-month basing structure was completed on the April push above 1.2775, leaving threat for higher price action towards 1.3121 into May.

EURUSD - Rebound bias

A rebound Friday, rejecting the Thursday spike below the 1.0850 support level with a rebound ahead of the top of the bull gap at 1.0818, leaving this higher for Monday

Furthermore, the April push above 1.0906 signalled an intermediate-term bullish shift.

For Today:

l We see an upside bias for 1.0933/37; break here aims for the cycle high 1.1023.

l But below 1.0837 opens risk down to the bull gap top at 1.0818, with interim support at 1.0778, ahead of the gap bottom at 1.0738.

Intermediate-term Outlook - Upside Risks:

l We see a positive tone with the bullish threat to 1.1023.

l Above here targets 1.1300

What Changes This? Below 1.0568 signals a neutral tone, only shifting negative below 1.0493.

4 Hour EURUSD Chart

EURUSD Chart

GBPUSD - Bullish threat

A consolidation Friday after the Thursday push below support at 1.2878, holding above better foundations at 1.2829 and 1.2803 and whilst above the higher of these two levels we still see a rebound risk into Monday.

Furthermore, the mid-April push above 1.2775 produced a multi-month Triple/ Quadruple Bottom pattern, which signalled an intermediate-term bullish shift.

For Today:

l We see an upside bias for 1.2950, potentially to a map 1.2989 and 1.3000.

l But below 1.2829 opens risk down towards 1.2803, which we would look to try to hold.

Intermediate-term Outlook - Upside Risks:

l We see a positive tone with the bullish threat to 1.3000.

l Above here targets 1.3121 and 1.3455/3534 area.

What Changes This? Below 1.2363 signals a neutral tone, only shifting negative below 1.2107.

Daily GBPUSD Chart

GBPUSD Chart

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