The euro came under pressure Wednesday after ECB officials addressed the pace of the euro’s rise, which is only natural after the single currency’s rapid appreciation. Governing Council member Ewald Nowotny argued that the appreciation in the single currency ‘is not helping’ the ECB in terms of price stability. The euro dropped below 1.22 after rejecting the 1.23-resistance. Ahead of the ECB’s policy meeting next week, we might see more profit-taking and consolidation in the EUR/USD.
The British pound, on the other side, took out the 1.3850-hurdle on hawkish comments from MPC member Michael Saunders. He said that interest rates will likely have to rise faster than the markets are currently anticipating in 2018. His assumption spurred bullish momentum in the GBP/USD, sending the currency pair to a high of 1.3943. However, with a potential BoE rate hike still several months away, the pound was not able to hold onto its high level and corrected some of its gains. For day-traders, it was a very profitable trading day with both of our yesterday’s long entries hitting their final profit target.
We will now focus on a trading range between 1.3990 and 1.3750. If the pound falls below 1.3740/30 it could head for a test of 1.37 and further 1.3650. On the upper side, the 1.40-resistance zone remains a crucial price barrier.
EUR/USD
Most recently, the euro traded with a downward tilt and we will thus focus on a trading range between 1.2250 and 1.21. A break above 1.2260 could spur further bullish momentum whereas a break below 1.21 could lead to further losses. 
Here are our daily signal alerts:
EUR/USD
Long at 1.2220 SL 25 TP 20-30
Short at 1.2160 SL 25 TP 20-30
GBP/USD
Long at 1.3860 SL 25 TP 40
Short at 1.3790 SL 25 TP 40
We wish you good trades and many pips!
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