The technical picture in both major currency pair has not changed significantly. Although the euro was accompanied by a slight downward inclination, which has led to a short-lived drop below 1.1370, the pair continued its recent sideways motion on Tuesday. With no important Eurozone data scheduled for release until Friday, we expect the EUR/USD to remain confined to a trading range between 1.1450 and 1.1340. A break above 1.1480 could drive the pair towards higher targets at 1.1520 and 1.1550, whereas we continue to focus on a sustained break below 1.1370 before shifting attention to crucial support levels at 1.1335 and 1.13.
The GBP/USD ended the day below its recent resistance level at 1.4470 after it failed to break above that level in a first attempt. Once the currency pair is able to trade above 1.4480, we see a higher likelihood for further bullish momentum in the near-term. Higher targets could then be at 1.4540, 1.4570 and 1.4615. On the other hand, if sterling breaks below the lower band of its recent uptrend channel, traders should focus on a significant break below 1.43 in order to sell GBP towards 1.42 and 1.4130.
U.K. Industrial and Manufacturing Production figures are scheduled for release at 8:30 UTC and in case of stronger-than-expected data, sterling could be vulnerable to an upward move.
From the U.S., Crude Oil Inventories are scheduled for release at 14:30 UTC but the impact on the currencies is expected to be limited.
Here are our daily signal alerts:
EUR/USD
Long at 1.1420 SL 25 TP 20, 40
Short at 1.1340 SL 25 TP 40
GBP/USD
Long at 1.4480 SL 25 TP 35, 60
Short at 1.4425 SL 25 TP 30, 70
We wish you good trades and many pips!
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