Yesterday, both EURUSD and GBPUSD significantly went up. The EURUSD finished the day above the R1 resistance level and the GBPUSD rose above 1.37. However, both Forex pairs are falling today. From the data front, manufacturing PMI and markit composite PMI will be published today, first in the Eurozone, then in the UK and in the afternoon in the US. Anyway, let’s start the analysis:
The EURUSD strongly went up yesterday. The price rose above the R1 resistance level. However, it started going down this morning. Right now the price is getting close to the Pivot Point. If the buyers don’t generate some serious appetite there, the price could drop to the S1 support level. But if they do, the price might even reach 1.22.
The GBPUSD also significantly went up yesterday. The price finished the day above 1.37. However, it is falling deeply today. If the buyers don’t generate some serious appetite pretty soon, the price could even drop to 1.36. But if they do, the price should return above the EMA 77 and 1.37.