The EURUSD and GBPUSD have both turned sharply higher in the early North American afternoon, with buyers gaining momentum.
For the EURUSD, the pair has erased its earlier losses and is now trading close to unchanged on the day. From a technical perspective, the key development is the failed break below the 100-hour moving average at 1.14177. Sellers had their opportunity but couldn’t sustain downside momentum, allowing buyers to regain the short-term technical edge.
The GBPUSD has strengthened even more, up around 0.23% on the day and trading near 1.3382, just shy of the session high at 1.3384. The pair is now testing the upper boundary of a key swing area. A decisive break above that level would shift the focus to a cluster of important resistance levels, including the 200-day moving average at 1.3398, the 50% retracement of the decline from the early May high at 1.3399, and the 100-day moving average at 1.34055. That confluence of technical levels will be the next hurdle for buyers.
In the video above, I break down the technical developments driving both currency pairs and explain the key levels traders should be watching as the early U.S. session rally unfolds.
