EUR/USD, EUR/GBP and GBP/USD remain bid ahead of FOMC minutes
Outlook on EUR/USD, EUR/GBP and GBP/USD as the US dollar remains under pressure ahead of Fed speeches and FOMC.
EUR/USD has broken through resistance
EUR/USD's advance above the 5 February high at $1.0805 is short-term bullish. Above the 200-day simple moving average (SMA) at $1.0826 and Tuesday's $1.0839 high beckon the early February high and 55-day SMA at $1.0881-97.
Potential slips are expected to find support around the 5 February high at $1.0805 and along the breached uptrend line at $1.0782.
EUR/GBP's recovery off five-month low stalls
EUR/GBP's bullish reversal off its current £0.8499 February low briefly exceeded the 6 February high at £0.8573 by rising to £0.8578 on Tuesday before retracing lower. As long as this resistance zone caps, further sideways trading is likely to be seen.
For the bulls to be in control a rise and daily chart close above £0.8578 needs to be seen in which case the 200-day SMA at £0.8587 would be back in sight.
Support below Monday's £0.8538 low sits between the July-to-August lows at £0.8504 to £0.8493.
GBP/USD surges back up again
Not only did GBP/USD manage to hold above its October-to-February uptrend line and 200-day SMA at $1.2565 since last week but the cross then also rallied back to the 55-day SMA at $1.2667 on Tuesday. It acted as resistance, though.
It and last week's high at $1.2691 need to be bettered for the $1.275 region to be back in sight. This scenario will remain in play while the early February low at $1.2519 underpins.
While $1.2691 caps, however, the bearish medium-term trend will remain valid.
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