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.
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