GBP and EUR continue with their downslides

 I can't believe it was November last year that I wrote about EURUSD and GBPUSD. Well, it was March this year that I did mention about these 2 counters, but that chapter was more on USD than EUR and GBP. 

So what is happening to these 2 counters right now? 

Fig 1. GBPUSD and EURUSD weekly chart

In my last entry on GBP, I set a short term target of 1.31 and it is presently crossing the mark. It rebounced from the support level tested the 8-week moving average and continued its down slide. It is suuported by the fact that the 21-week moving average is now crossing the 55-week's. While the moving average of higher time frame (55, 89 and 144) are still in alignment of an up-trend, they are converging downward. The chance of downward movement is still more probable. 

I am wondering if this has to do with Boris Johnson visiting Ukraine, promising lots of funds to support the war? After wall, it is on the last day of trade that GBP broke the previous low, the day Boris Johnson arrived at Kyiv.

My last entry on EUR mentioned that its direction was clearer as the counter has dropped below all moving averages. as I look at it this week, its down slide is more determined.

Firstly, the 89-week moving average made a golden crossed with 144-week, secondly, EUR tested the 8-week moving average and retreated with a long bar moving downward.  It even attempted to cover the gap and failed, further supporting the decision of downward thrust.

With both counters seemingly on a downslide, which one might I want to choose for short trade?

Fig 2 GBPUSD and EURUSD daily chart

Okay, I am speaking hypothetically. I do not really trade in forex, my system is not really suitable for Forex. 

If I am to trade in forex, I will choose EURUSD looking at gradient of their decline on daily basis. The gradient of GBPUSD is gradual and looks as if it is on a counter wave and would bounce up any time. It does not mean that there is a change in trend it might just complete a 3 wave counter wave pattern ending at the 55-day moving average @ 1.326697. If it is to maintain its course downward, its support levels will be 1.290272 and 1.265551.

EURUSD on the other hand has a steeper drop and if correct the next few days might be resisted by the 8-day moving average @ 1.094037. On the down side, it is supported at 2 levels, 1.075807 and 1.049526.