GBPUSD Has A Positive Week, EURUSD Jumps Higher Though Still Ranging
- Cable has had an impressive week, rallying 2.33% from its Monday low as momentum to prevent a no-deal brexit gained traction.
- Market positioning shows a potential fall in shorts against sterling-a favoured position in the FX market for over two years.
- Cable has rallied through a key level, namely 1.30. After rejecting twice, the rate pierced the downtrend line taken from the September 2018 high and could test the November 2018 high of 1.3172. Nearby is the 38.2% fib level, at 1.32. This round level could be pivotal to GBPUSD as fundamental risks from Parliament on Tuesday could hurt the rally.
- A deeper topside target could potentially be 1.3429. This is the 50% fib level of the same down move.
- Momentum setups are bullish with the daily MACD trending in positive territory.
- EURUSD punched higher on Friday after slipping earlier in the week on comments from ECB chief Mario Draghi.
- Mario Draghi stated economic risks have shifted to the downside. Future data is likely to be weaker than forecasted.
- Thursdays fall holds above 76.4% fibo of the Nov-Dec rise.
- EURUSD ignores German IFO miss, rallies hard towards the Ichimoku cloud top.
- Standard line resides at 1.1429 and may reinforce resistance from the cloud top.
- In addition to topside struggles is the 38.2% fib of the aforementioned rally. The flurry of factors may provide a problem for a continued EURUSD rally.
© Akif SH. Din MSTA, CFTe, AGORA-direct Limited, 25/01/2019
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