EURUSD has more upside potential in the short term due to hawkish ECB and bullish market expectations. GBPUSD remains highly dependent on relative US and UK economic performance. Both trades require active risk management and close monitoring of economic developments


Euro/Dollar (EURUSD):

  • Trend: Short-term uptrend continues.
  • Buy opportunity: Support zone 1.0883-1.0870, with targets at 1.1007 and 1.1068-1.1059.
  • Sell opportunity: Break below support zone, targeting 1.0757-1.0732.
  • Key points:
    • Hawkish ECB officials and easing US market fears support EURUSD.
    • Bundesbank warns against expecting aggressive easing in 2024.
    • US economic strength might delay Fed rate cuts.

Trading plan: Buy at support with stop-loss based on pattern rules. Monitor US economic data and Fed signals for potential sell triggers.


Pound/Dollar (GBPUSD):

  • Trend: Uncertain, influenced by mixed UK data and US market sentiment.
  • Short opportunity: If US outperforms UK and GBPUSD falls, target $1.2575 and $1.2535.
  • Key points:
    • UK inflation slowdown weakens rate cut expectations.
    • Falling US stocks and risk of UK recession weigh on GBPUSD.
    • BoE’s slower policy action compared to Fed raises doubts.

Trading plan: Wait for confirmation of downtrend before considering short positions. Monitor UK economic data and BoE pronouncements for further cues.

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