GBP/USD Technical Analysis
The British Pound is breaking below the 50-day EMA, and I think it is finally starting to roll over. I did previously suggest that maybe this was a topping pattern. I think on Thursday, we’re starting to get that answer.
With that being the case, the 200-day EMA is the next target, and then after that, we could be looking at the 1.30 level. I have no interest in buying anymore, at least not until we break above 1.36, something that I just don’t see happening in the short term.
EUR/GBP Technical Analysis
The Euro has bounced slightly against the British Pound during trading on Thursday as the 200-day EMA continues to offer support. That being said, I still think this is a pair that probably falls, but short-term rallies are likely in the meantime.
I’m willing to fade those short-term rallies at the first signs of exhaustion. The 0.86 level underneath, I think, is your initial target. Anything below there really opens up the downside here, and we could go looking to the 0.85 level, followed by the 0.84 level. Above, the 50-day EMA offers a bit of a ceiling.
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