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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved.

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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