RBS technical analysis is bullish on EUR/USD and on GBP/USD
Starting with EUR/USD, RBS notes that it sustained above a key level
of 1.0965, as weekly MACD formed a positive crossover, confirming the
view that the correction may be over and an uptrend formation may start
soon.
"This is also confirmed by daily oscillators, which are most reliable in a sideway market," RBS adds.
Therefore, RBS holds the view for the currency to be forming a
base and see 1.14-ish area re-tested in the near future with a break
opening new targets at 1.1850, 1.2090 and above.
"However, if the 1.0965 support is broken on a sustained basis
(on close), further weakness to 1.0847 and potentially 1.0700 and 1.0520
could be expected," RBS argues.
Turning to Cable, RBS thinks that its bullish view gained confidence
amid rejection of the area below 1.54 and a potential weekly bullish
engulfing candlestick this week (a weekly close above 1.5551 is
required).
Also RBS argues that as the price closes the bearish gap of
1.5575, this generates be a very strong bullish signal targeting 1.6070
and 1.6433
