EUR/USD

The EUR/USD pair broke to the upside during the day on Wednesday, as the 1.11 level underneath offers plenty of support. Ultimately, the market looks to be ready to consolidate in general, and that could send the market towards the 1.13 level above. If we do breakdown below the 1.11 handle, that should send the market to the 1.10 level underneath. Alternately, the market continues to be volatile, but given enough time we should continue to find consolidation holding, as there are a lot of moving pieces in both directions. If we did break above the 1.13 level, the market should then go to the 1.15 handle above. That is the top of the overall consolidation, so it makes sense that we would go aiming towards it.

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GBP/USD

The British pound fell initially during the day on Wednesday, finding support at the 1.26 level. Ultimately, we bounced all the way to the 1.2725 level, and then pulled back to form a slightly positive candle at the end of the day. I believe that the market will probably continue to find support in the range of the 1.26 handle, and that should send the market looking for the 1.28 level over the longer-term. Ultimately, we can break above their and then go to the 1.30 handle. The market will continue to be very volatile, due to the headlines coming out about the Brexit. Because of this, you will have to be very careful when trading this market, but ultimately, I do think that the buyers will find their way back in as the British pound has been sold off rather drastically. The market breaking down below the 1.26 level will be negative and send this market looking for the 1.24 handle on the other hand.

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