Euro bulls seem to take a short break, while pound sterling seems to be quite vulnerable. Take a look at our quick comprehensive forex outlook for the near future.
The EURUSD structure indicates that the market is moving within the green and yellow channels, which are approximately the same in size.
Not so long ago, the price pushed off from the upper line of the green channel and started moving down to the lower line of the yellow channel and the support level of 1.166. If this target level is reached and then broken, then the bears may open a path to the lower line of the green channel and the support level of 1.153.
However, if the market moves up in the near term and the bulls rise to the resistance level of 1.196, which is on the upper green line, then they will have an opportunity to break the green line. If this happens, the price rise can be continued to the upper yellow wall and the resistance of 1.217.
For GBPUSD, the market continues to move within the yellow and green channels. The currency pair pushed off from the lower line of the yellow channel and began to move smoothly upwards.
It is likely that at the moment the price is directed to the resistance of 1.342. If this is the case, then if this level is broken, the market growth will continue to the upper yellow wall and the resistance of 1.391.
But there is also a chance that the bulls have weakened and the bears have gone up. In this case, we could expect a decline in the price to the 1.292 area located on the lower wall of the yellow channel. Having gained enough strength, the bears can break through this support level. In this case, the price can expect a decline to the level of 1.268, which is on the lower green line.