We finally saw some corrections in both major currency pairs at the beginning of this holiday-shortened week as investors took profit on long dollar positions. While the euro rose only moderately to 1.0650, the British pound proved to be the best performer and surged to a high of 1.2513. While we believe that the upward movement in the EUR/USD may be limited until 1.0660/90, there could be some room for further gains in the GBP/USD.
The pound gave up some of its gains today but if it remains firmly above 1.2430 it may head for another test of 1.25. A break above the 1.2515-level would shift the focus to the higher target at 1.2550. As stated in previous analysis, a sustained break above 1.2550 could reinvigorate fresh bullish momentum, driving the pair even higher towards 1.2770. Current supports are seen at 1.2380 and 1.23. Euro bears should however wait for a renewed break below 1.0570 in order to sell euro towards 1.05.
There are no major economic reports scheduled for release today. The U.S. Existing Home Sales report due at 15:00 UTC is not expected to have a significant impact on the dollar.
Here are our daily signal alerts:
EUR/USD
Long at 1.0670 SL 25 TP 20, 40
Short at 1.0610 SL 25 TP 15, 35
GBP/USD
Long at 1.2525 SL 25 TP 20, 50
Short at 1.2475 SL 25 TP 15, 40
Daily Signal performance in pips:
November 2016:
EUR/USD: +213 pips
GBP/USD: +333 pips
We wish you good trades and many pips!
Disclaimer: Any and all liability of the author is excluded.