EUR/GBP digs into support as GBP/USD grapples with resistance pre-UK budget while EUR/USD bounces off support
EUR/GBP digs into support as GBP/USD grapples with resistance ahead of the UK’s first Labour party budget in 14 years; meanwhile EUR/USD bounces off support.
EUR/USD bounces off support
EUR/USD revisited and then bounced off its $1.0778-62 support area as expected. For a bullish reversal to take shape, a rise and daily chart close above Friday's high at $1.0839 would need to be seen. If so, the 200-day simple moving average (SMA) at $1.0868 would be back in the frame.
Failure at $1.0778, however, would push the 9 May low at $1.0724 to the fore.
EUR/GBP digs into support
EUR/GBP retests the £0.8318-to-£0.8296 support area ahead of the UK budget. Were this support zone to give way, the January 2022 and December 2019 lows at £0.8285-77 would be in sight.
Minor resistance comes in at last week's high at £0.8352.
GBP/USD grapples with resistance
GBP/USD fights with the $1.3000-to-$1.3045 resistance area ahead of Rachel Reeve's first Labour budget in 14 years. While it caps, the recent downtrend remains intact.
A slip through $1.2908 would eye the June high at $1.2861.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. 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.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
