Euro and Pound Weekly Update - March 11/15 close

EURUSD

Last week the price on the Euro-Dollar bounced back down from the SMA200 to the previous 61.8% Fibonacci retracement level, closing at 1.3900. I would favor a continuation to the upside towards previous highs near 1.4300. On the daily charts we see a bullish Friday and aiming to reach the upper level of the channel and previous Monday highs at 1.4034. This week opened with a considerable gap up, reached psychological 1.4000, filled the gap back down, went back up for a retest of the level and it is as of today trading at about the same price of the Sunday open. The outlook is bullish and aims to a 138.2% extension on the previous swing high, at around 1.4260.

GBPUSD

Last week was bearish for the Pound-Dollar and the price broke the lower line of an ascending channel inscribed into a rising wedge, closing barely below that level. On the daily charts we have a pin bar after making a new low which was then rejected and closed above the previous low level (1.6034). I was favoring a bullish view because of the strongly rejected pin bar candle, and a move towards the middle line of the Bollinger bands and 50% of the previous range, at 1.6188, which came into play on Monday giving back all gains yesterday. Good opportunity to go long again and I would be targeting the lower line of the previous ascending channel,  at around 1.6220/30 as a first target, then a push towards psychological level 1.6300 and finally a retest of previous highs at 1.6340/50.

EURGBP

The Euro-Pound exhibited a similar behaviour to that of the Euro at the beginning of this week: gap up, gap filled and new highs yesterday. Last week ended above the breaking price of the symmetrical triangle and the 50% Fibonacci retracement on previous swing low. I had expected some resistance there and a move back down for a retest of the break at 1.8540 but the gap and subsequent moves especially yesterday invalidated those views. Price reached the 138.2% extension on the daily swing high and I would now expect a correction towards the base of the ascending channel at 0.8610/0.8590 and middle line of the Bollinger bands (presently at around 0.8580) before a further continuation to the upside.