EUR/USD, GBP/USD recover on back of weaker US dollar while EUR/GBP hovers above 5-month low
Outlook on EUR/USD, GBP/USD and EUR/GBP post Fed and BoE meetings at which rates were left unchanged.
EUR/USD recovers from six-week low
EUR/USD drop to Thursday’s $1.078 low was followed by a swift advance to above the December-to-February downtrend line at $1.0868 as the US dollar depreciates.
The 55-day simple moving average (SMA) at $1.0915 as well as the 24 January high at $1.0932 are now in sight.
Support below the breached downtrend line can be seen along the 200-day SMA at $1.0841.
GBP/USD rallies as BoE leaves rates unchanged
GBP/USD continues to range trade but is seen heading back up towards last week’s high at $1.2775 as the greenback is retreating.
Strong resistance sits between the December-to-January highs at $1.2786 to $1.2828 which is likely to once again cap.
Slips should find support around the 30 January high at $1.2721 ahead of the 55-day SMA at $1.2673.
EUR/GBP continues to hover above five-month low
EUR/GBP's slide from its £0.8714 December high has taken it to Monday’s £0.8514 five-month low which sits within the June-to-August support area at £0.8519 to £0.8493. This support zone has held since the beginning of the week and continues to do so as the Bank of England (BoE) left rates unchanged.
A fall through £0.8514 to £0.8493 would likely engage the April 2021 low at £0.8472.
Resistance above Thursday's £0.8558 high can be seen at Tuesday’s £0.8567 peak.
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.
