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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

EUR/USD, GBP/USD remain bid while EUR/GBP tests key long-term support

EUR/USD, GBP/USD remain bid following last week’s 50 bps Fed rate cut while EUR/GBP tests key long-term support.

EUR/USD Source: Adobe images

​​EUR/USD retains bid

EUR/USD still sideways trades below last week's post-Fed 50 basis point (bps) rate cut $1.1189 high, made marginally below its $1.1201 August peak. This will remain in sight while Thursday's low at $1.1069 underpins.

Minor support above $1.1069 can be seen in the $1.1030 region.

EUR/USD chart Source: TradingView.com
EUR/USD chart Source: TradingView.com

EUR/GBP retests July low

EUR/GBP tests its £0.8378 July low which, together with the November 2021 trough at £0.8373 is expected to offer support. As long as this support zone holds, a bounce back towards the £0.8404 late August low may be on the cards.

Failure at £0.8373 would eye the £0.8367 early May 2022 low, below which lies the early August 2022 low at £0.8340.

EUR/GBP chart Source: TradingView.com
EUR/GBP chart Source: TradingView.com

GBP/USD looks bid

GBP/USD has so far risen to $1.3340, close to the $1.3358 January 2022 low which may short-term cap.

Immediate support can be found at the $1.3267 August peak.

GBP/USD chart Source: TradingView.com
GBP/USD chart Source: TradingView.com

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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.

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