Forex Video Briefing (9/24) – EUR/USD and GBP/USD
EUR/USD was already bearish heading into the 9/24 session. We saw some choppy action, but there was never a sign of any meaningful consolidation or bullish correction. This week, price found resistance at 1.29 and is now falling below 1.28. When we look at the weekly chart, we can see that price is now approaching the 2013 low at 1.2745. Also, the 61.8% retracement is right around 1.2787 and price has already cracked that. We should probably expect some consolidation around 1.2750 especially with the RSI reading in the weekly and daily chart in oversold levels.
GBP/USD managed to rally from 1.6051 to 1.65 in the past couple of weeks. This rally was likely in anticipation of Scotland voting to remain in the UK. Cable had a classic buy the rumor sell the news reaction. After the vote, GBP/USD slide from 1.65. This essentially maintains a bearish outlook as the falling trendline from the 1.7191 high on the year remained in play, and is still in play. If GBP/USD can break below 1.63, there will be a good chance for a bearish attempt toward 1.6051. Below 1.6050, the next key support will be around the 1.60 handle, reinforced by 50% retracement and the 200-week SMA.