In today’s Forex and Gold forecast, Steven Woodcock, Senior FX Analyst at Plutus FX, offers the technical outlook for GBP/USD, EUR/GBP, USD/CAD, USD/TRY and Gold prices.
GBP/USD: Guided by EUR/GBP moves
Woodcock maintains his negative outlook on the GBP/USD, noting that the cross looks heavy despite UK showing a good fundamentals. He believes that the pair is looking to dive towards the 1.5250-1.52 area. He further adds that 1.5250 is a key historic level for the Cable.
On EUR/GBP, he feels that the EUR isn’t rallying, but only seeing a bounce. He further remains on the dollar’s side, maintaining his bullish view on the greenback.
EUR/GBP sees upside potential
Woodcock notes how the EUR/GBP cross looks firm and might be heading for an upside move towards 0.7750. He suggests adopting a buy on dips approach on the pair towards 0.7150.
USD/CAD remains an oil trade
Woodcock comments on the oil rally and the subsequent reaction in USD/CAD, and further mentions that the cross remains an oil trade and is mirroring moves. He sees a bit further downside potential for the cross ahead.
USD/TRY: One way street
“Sell the Turkish Liraâ€, quotes Woodcock as he takes a technical look at the charts for the currency, noting that the political risks suggest the cross has further upside moves ahead.
Gold: sees bit of upside potential
Woodcock comments on the Gold trade, noting that although a bit of upside potential is seen for the precious metal, caution is warranted. Gold prices currently remain in the middle of a range, and a $50-$60 move on the either side can be seen. He suggests playing the yellow metal on a daily basis and keep stops close.
