Finally we got what we were looking for: A breakout in the EUR/USD after the pair spent several days trading sideways without showing any sustained movements. The euro broke below 1.13 and headed for 1.1250. We now see a next possible support at 1.1220 from where the euro may recover some losses (see also the technical analysis below). Sterling traders, however, needed perseverance and patience in order to take advantage of the later profitable downward move. We have made several attempts to sell the British pound towards 1.4180 but only the last sell order was finally successful. Although U.S. retail sales unexpectedly fell in March, weak data did not deter investors from favoring the dollar trade, sending the euro and pound sterling sharply lower.
The Bank of England is scheduled to announce its monetary policy decision at 11:00 GMT today. While no changes are expected, the upcoming Brexit vote poses a potential risk to the currency. Although there are some positive signs with U.K. inflation accelerating in March, investors continue to have a pessimistic outlook, at least until the referendum is over.
GBP/USD
Looking at the daily chart we a well-defined downtrend channel, according to which a next lower target could be at 1.3980. GBP must now break below 1.41 in order to spur sterling bears for a test of 1.4050 and 1.40. Current resistances are seen at 1.4230 and 1.4280. 
EUR/USD
The euro has left its recent trading range and could be headed for a test of 1.1220 in the near-term. Below 1.12 there is no support until 1.1150 and 1.1070. We expect the 1.1070/50 area to be an important support zone for the pair and traders should watch out for possible pullbacks from these levels. A current resistance is seen at 1.1330/50.
Apart from the BoE rate decision, Eurozone Consumer Prices are scheduled for release at 9:00 GMT today, followed by the Consumer Price report from the U.S. at 12:30 GMT. If U.S. inflation data surprise to the upside, the greenback will gain more attraction and investors will begin pricing in a faster pace of interest rate hikes.
Here are our daily signal alerts:
EUR/USD
Long at 1.1315 SL 25 TP 30-40
Short at 1.1229 SL 25 TP 20, 40
GBP/USD
Long at 1.4210 SL 25 TP 35-40
Short at 1.4118 SL 25 TP 30, 50
We wish you good trades and many pips!
Disclaimer: Any and all liability of the author is excluded.