GBP/USD: Primed For Run Towards 1.35?
MaiMarFX | Nov 23, 2020 05:48AM ET
This week will offer more potential for traders in terms of bigger market movements. The euro has proven its resiliency against the U.S. dollar and remains at higher levels despite the economic challenges the EU will be facing in the coming months. Like many other analysts we believe that the euro’s price is too high but we must not forget that “the trend is our friend’ and based on that motto it might be too early to mark a high in the euro’s uptrendh2 EUR/USD/h2
Given the euro’s sturdiness we believe that the pair could touch the 1.1950-60 level before a steeper correction might be possible. A dip below 1.1830 may reinvigorate fresh bearish momentum with lower targets between 1.1730-1.17.
h2 GBP/USD/h2The pound sterling traded with a tailwind and broke above 1.3315, eliminating a potential double-top pattern in the medium-term. Is it now time for a run towards 1.35? Maybe, as long as crucial support levels at 1.3250 and 1.31 prove to hold. However, we note that any further upward movement might not be straight-lined since the pair remains in overbought territory.
The U.S. celebrates the Thanksgiving holiday on Thursday but this doesn’t mean that there will be no momentum and no trend in the market. Let’s wait and see.
We went long in GBP/USD (at 1.3335) and DAX (at 13240) and both trades have already reached our profit target.
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