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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.

Outlook on EUR/USD, EUR/GBP and GBP/USD ahead of UK budget and Powell speech​​​

​​​EUR/USD, EUR/GBP and GBP/USD likely to be affected by UK budget and Powell speech in Congress.​​

EUR/USD Source: Bloomberg

​​​EUR/USD targets the 55-day SMA

EUR/USD remains above its breached its December-to-March downtrend line and is expected to hold above its 200-day simple moving average (SMA) and tentative uptrend line at $1.0834 to $1.0827 whilst targeting the 55-day SMA and Tuesday's high at $1.0875 to $1.0876.

While Thursday's $1.0796 low underpins, the short-term uptrend remains intact.

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

​EUR/GBP consolidates further still

Despite its recent minor corrective phase lower, EUR/GBP still has the £0.8573 to £0.8578 key resistance area in its sights while it stays above its 23 February £0.8529 low.

A rise and daily chart close above £0.8578 must be seen for the 200-day SMA at £0.8608 to be reached. Good support below £0.8529 sits between the July-to-August lows at £0.8504 to £0.8493.

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

​GBP/USD looks bid ahead of UK budget

GBP/USD has shot up from Friday's low at $1.26 to Tuesday's $1.2735 high, a rise above which would target the $1.2772 to $1.2786 resistance area.

This bullish view will remain valid while Friday's low at $1.26 underpins. Minor support below the 55-day SMA at $1.2675 lies at the late-January $1.2641 low ahead of the more significant $1.2612-11 support zone.

GBP/USD chart TradingView.com
GBP/USD chart TradingView.com

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.

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