Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

Pound And Euro Take Major Round Levels Against Dollar

ByFxPro Financial Services Ltd
AuthorAlexander Kuptsikevich
Published 04/20/2021, 04:02 AM
Updated 03/21/2024, 07:45 AM

EUR/USD has jumped 3% so far in April while GBP/USD is up 2.4% after seven trading sessions of back-to-back increase. Both currency pairs, very popular with traders, crossed important round levels, 1.2000 and 1.4000, which prompted short-term traders to bet on a pullback from the local extremes.
EURUSD has jumped 3% so far in April
But such an approach by short-term speculators assumes that the growth of those pairs from the beginning of April is a correction from the drop in January-March. We suggest looking at the situation from a broader perspective.
 
The slide of EUR/USD from January to March this year is just a corrective pullback after the growth impulse from March to December 2020. It was a classic 38.2% Fibonacci retracement of the rally from the lows of March 2020 to January 2021.
 
On Monday, EUR/USD saw a robust rise from the 50-day average, which acts as a strong confirmation signal of bullish sentiment.
 
EUR/USD could easily go back to the highs above 1.2250 or even 1.2350, with little to no pullback.
 
If we look at longer-term growth targets, they could be 1.3400 (161.8% of the March-January rally) or even 1.4000 (area of 2014 highs).
GBPUSD returned to the upside last week
GBP/USD returned to the upside last week after less than a month and a half of a 23.6% Fibonacci retracement of the May-February rally. That is, it has been able to swim against the current for longer and even renewed highs, and its correction in previous weeks was less profound.

Having managed to hold at 1.4000, GBP/USD could quickly head towards the February highs above 1.4240, which is also near the 2018 peaks. A fast and direct path to 1.5000, an important round level and all-time highs since the Brexit referendum, is already opening up.

The FxPro Analyst Team

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.