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EURUSD and GBPUSD: Euro is again above the 1.10000 

  • Yesterday’s decision by the FED to increase the interest rate by only 0.25% from 4.50% to 4.75% pushed the EURUSD to a new high this year.
  • The GBPUSD pair yesterday found support at the 1.23000 level, and after the Fed’s interest rate news, the pair jumped to the 1.24000 level. 

EURUSD chart analysis

Yesterday’s decision by the FED to increase the interest rate by only 0.25% from 4.50% to 4.75% pushed the EURUSD to a new high this year. Pair EURUSD rose to the 1.10330 level last night. After that, the consolidation and retreat to the 1.10000 level began. We can now track how this consolidation will unfold and where the EURUSD will find its next support.

We could look for potential support at the 1.09500 level at the breakthrough point from the previous movement zone. If EURUSD fell below that, there is a probability that it would descend into the previous movement zone.

We need a positive consolidation and a return above the 1.10000 level for a bullish option. Then we need to maintain our position there in order to initiate the further recovery of the euro with the next bullish impulse. Potential higher targets are 1.10500 and 1.11000 levels.

EURUSD Chart Analysis

GBPUSD chart analysis

The GBPUSD pair yesterday found support at the 1.23000 level, and after the Fed’s interest rate news, the pair jumped to the 1.24000 level. During the Asian trading session, the pound traded just below the 1.24000 level. Now we see a pullback and a pound drop below the 1.23500 level. Later we expect a report from the Bank of England on the interest rate.

Expectations are that the BoE will raise the interest rate by 0.50%, from 3.50% to 4.00%. If this is established correctly, we could expect increased volatility of this pair. There could also be a drop in GBPUSD if the news is in line with economists’ predictions. For a bullish option, we need a break above the 1.24000 level, as well as staying up and forming a support for the next bullish impulse.

GBPUSD Chart Analysis

 



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