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The FxPro Analyst Team

GBPUSD and EURUSD Test Supports After a Substantial Fall

GBPUSD has turned bullish, and been trading above the downside uptrend line support since 25th Oct, due to the strengthening of the Sterling.

As a result of a strong dollar caused by the Fed’s interest rate decision and announcement, GBPUSD has retraced with a long bearish candle, and the downside support line was broken on 15th Dec.

This morning we saw the release of the UK Public Sector Net Borrowing for Nov, rose to 12.21 billion from 4.324 billion in Oct, and surpassed the expectations of 11.3 billion.

The figure further weighed on GBPUSD, testing the short term support line at 1.2300 and held, as this level provides a stronger support, the bearish momentum is likely to wane at this level.

Yet the price is trading below the 10 SMA and the 20 SMA, indicating the current trend remains bearish, the selling pressure above is still heavy.

The current trading pattern is likely to oscillate in the range between 1.2300 and 1.2400.

The resistance level is at 1.2380, followed by 1.2400.
The support line is at 1.2350, followed by 1.2330 and 1.2300.

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gbpusd-h4

As a result of a strong dollar caused by the Fed’s interest rate decision and announcement, EURUSD has retraced with a long bearish candle, and the significant support line at 1.0500 was broken on 15th Dec.

On the 4 hourly time frame, the price is trading below 10, 20, and 50 SMAs, indicating the current trend remains bearish, the selling pressure above is very heavy. Yet the bearish momentum is waning.

The daily Stochastic Oscillator is below 20, suggesting a rebound.

The near term major support level is at 1.0300, where provides a stronger support. The downtrend is likely to be held above the level.

The near term major resistance is at 1.0500.

The resistance level is at 1.0400, followed by 1.0430 and 1.0470.
The support line is at 1.0380, followed by 1.0350.

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EURUSDH4

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