EUR/GBP rallies, GBP/USD drops post UK budget as AUD/USD stems its decline
EUR/GBP rallies, GBP/USD drops as UK yields rally to a five-month high following the UK budget while AUD/USD stems its decline amid some buying interest.
EUR/GBP bounces off support
EUR/GBP rallied from its £0.8318-to-£0.8296 support area after the UK autumn budget announcement, so far to the mid-October high at $0.838. Above it beckons the 55-day simple moving average (SMA) at £0.8393. If bettered, the early October high at £0.8434 would be next in line.
Potential slips may encounter minor support around the 24 October high at £0.8352.
GBP/USD capped by resistance
GBP/USD retested but has once more been rejected by the $1.30-to-$1.3045 resistance area following Rachel Reeve's first Labour budget in 14 years.
While this area caps, the recent downtrend remains intact with the April-to-October uptrend line at $1.2935 representing the first downside target. A fall through it would put last week's low at $1.2908 on the cards. Below it lies the June high at $1.2861.
AUD/USD tries to find support
Even though AUD/USD briefly fell through its $0.658-58 support zone to $0.6537 on Wednesday, it looks as if the cross is trying to level out. Therefore, provided that $0.6537 underpins, a rise back towards the 200-day SMA at $0.6627 may be at hand. Were a slip through Wednesday's low at $0.6537 to occur, though, the 25 July low at $0.6515 and also the 31 July trough at $0.648 as well as the 78.6% Fibonacci retracement at $0.6477 would be in focus.
Minor resistance above Wednesday's $0.6596 high remains to be seen along the 200-day SMA and the September low at $0.6623-to-$0.6627.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
