Euro and Pound Weekly Update - Jan.21 close

EURUSD

Euro-Dollar keeps trading inside a weekly symmetrical triangle formation and has reached the SMA100, while the daily down trend line was broken to the upside and is aiming to the 61.8% Fibonacci retracement at around 1.3750. A retest of the broken psychological level at 1.3400 is possible before a continuation of the bullish move, which I would expect to reach previous highs and strong resistance level near 1.4300 in a medium term view. Overall longer term trend is still bearish but moving averages on daily are starting to turn to the upside and I would favor a bullish view on this pair.

GBPUSD

The Pound Sterling keeps ascending on the weekly charts and has broken the daily descending channel to the upside ending the week just above psychological level 1.6000. My expectations on the medium/long term are for a push forward to the weekly SMA200 (1.7000/1.7100) and on a shorter point of view a retest of previous daily highs at 1.6300/1.6350 is quite feasible, this would bring us to the upper weekly Bollinger Band. Weekly SMA100 and SMA34 are getting closer and about to cross and we could see a nice continued up-move over the next weeks.

EURGBP

The Euro-Pound is still trading inside the triangle formation and tightening its range, with a continued ascension over the last week and a 61.8% Fibonacci retracement of the previous daily swing low. Moving averages are crossing to the upside and if the actual level at SMA100 is broken, we would be targeting the previous highs at around 0.8630/50 (61.8% Fibonacci retracement on previous weekly swing low). On a longer term scope, and if that level is surpassed, we are targeting previous weekly highs at 0.8940. A bounce to the downside could occur if present level holds as a resistance, targeting the lows at 0.8290/80 and lower trend line of the channel.