EUR/USD, GBP/USD Technical Outlook: Wave Analysis and Forecast

Forex Market Overview

Recent shifts in the global economic landscape, particularly concerning inflation and the cost of living in major economies, continue to influence currency valuations. While broader economic indicators set the stage, technical analysis provides crucial insights into potential price movements for key currency pairs. This report focuses on the current wave structures for EUR/USD and GBP/USD, outlining anticipated trends and target levels.

EUR/USD Technical Outlook

Would you like to read more good news about Republicans, Lose, and Elections?

The EUR/USD instrument appears to be operating within an overarching upward trend, though a corrective structure has been observed in the shorter term. The recent a-b-c corrective wave set now appears complete, suggesting a potential resumption of the primary trend.

Never miss news-driven moves – use the News OCO Expert Advisor. Find out more.

Currently, the market is likely developing wave 3 or C, potentially as part of a larger wave C. Should this pattern hold, the entire wave C could extend significantly below the 1.1400 level. However, such a pronounced downward movement would likely require substantial geopolitical catalysts to materialize.

Alternatively, if geopolitical support is absent, the downward wave set might conclude as a simpler a-b-c correction, potentially finding completion around the 1.1578 mark. Traders should monitor both scenarios for confirmation of the underlying wave count and directional bias.

GBP/USD Technical Outlook

The wave picture for GBP/USD has shown increased clarity, indicating that a distinct upward structure has reached its completion. This development suggests an imminent formation of a downward wave set.

This anticipated downward movement is expected to take an impulsive form, aligning with a potential impulsive structure observed in EUR/USD. Following an initial decline of approximately 300 pips, a corrective wave is projected to occur.

Subsequently, a new downward impulse is anticipated, targeting the 1.3000-1.3100 range. The strong initial decline suggests that this may indeed be a full-fledged impulsive structure, underscoring a bearish outlook for the British Pound against the US Dollar.

Thank you for reading. Level up your trading with proven RobotFX expert advisors – check them out now.