Pound has entered inside the wedge and has the potential to move towards the upper trendline or 1.3347, about 200 pips from the current level. On the flip side it can also range between 1.3060 to 1.2948, todays weekly close will set the tone for the coming weeks trend.
Price on the hourly chart is trading within the wedge and is currently supported by the lower channel line, a break below this channel will push the pair towards 1.3086. On the contrary, if price rebounds from the current level then it can close at 1.3152 for the week.
EUR/USD may have a minor retracement in the coming week as price reached the upper channel and the 23.6% and has started to rebound in the daily chart. EUR/USD is currently negative 45 pips from open and has started to plunge the upper trendline drawn from 3rd December 2012 (Green line).
If price breaks below this level and stays below without breaching the trendline for 4 continuous candles in the hourly chart, then price will close at 1.1273 or the 100 DMA for the week. If this happens then we can place long orders at 38.2% fib near 1.1192 and the 200 DMA.
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