GBP hawkish, Euro holding key support, USD eyeing midterm election. Below is the technical outlook.
- GBP has become excessively aggressive, as it is edging towards a two-weeks high.
- A GBP break of 1.3100 hurdles is closing in, as Brexit hopes are gaining momentum along with the Times Magazine’s recent report
- USD gets softened focusing on the mid-term election, as a potential political jam may be forthcoming among the republicans and democrats
- EUR is holding its key support above 1.1400, as USD is getting softened, despite confusion regarding Italian budget
GBP technical outlook
The GBP has been edging towards a two-weeks high and a break above 1.31 hurdle is closing in. Much optimism is gathered around a positive Brexit deal hope, as the Brexit Minister Raab showed a “thumbs up” while seen leaving the cabinet. According to internal sources, it is also reported that a second cabinet might have been scheduled in a next few days. At this moment, 1.3100 seems to be a topside resistance and it is broken, GBP may reach 1.3200 in this week, gaining all of the losses of previous months.
GBP/USD daily chart
USD technical outlook
For the majority of the sessions, the US dollar has been softening, as market is focused towards the US mid-term election. There is possibility of a split congress with Republicans keeping the senate and a political jam could unveil itself.
USD daily chart
EUR technical outlook
EUR is holding above the 1.14 region with much superiority, as US keeps softening. As weak PMI UK data leaves no trace in the market, Euro is floating well above its key support. However, unless there is an alternation of the recent budget proposal as the EU proposed, EUR might lose ground in the near-future
EUR/USD daily chart
Fair and square, so far so good, GBP is doing well and if this momentum goes on, a break above 1.3200 might soon face the light of dawn. It gets really harder for Eur to gain further momentum with Italian budget complications whirling around, yet, an upwind momentum is expected. For now, caution should be taken for the USD traders, as market will be playing safe, until the election is over.
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[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]