EUR/USD and GBP/USD likely to fall back
EUR/USD and GBP/USD look primed for another leg lower over the short term.
EUR/USD starts to weaken after recent rally
EUR/USD has seen sharp gains throughout the past week, with the pair hitting a four-month high on Tuesday. We have seen a tentative signal that this rally could reverse in the short-term, however, bringing about another downward retracement.
The recent creation of lower highs and lows seen since that $1.1239 peak signals a potential bearish phase coming into play. A drop below $1.1181 would provide a more confident signal of such a move. For now, watch whether we see a break through the $1.1224 swing-high or not. Should that break occur, we would look likely to come back into a more bullish outlook. Until then, another leg lower looks likely today.
GBP/USD at risk of another leg lower
GBP/USD has similarly been gaining ground over the past week, yet the decline seen overnight signals a potential downward retracement coming into play.
With the current price action providing a very minimal rebound, this looks likely to resolve in another leg lower. As such, a deeper retracement looks likely from here, with a bearish picture in play for today unless we see a rise through the $1.3268 level.
The information 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 Bank S.A. 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 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. See full non-independent research disclaimer.
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
- Take your position
- 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.
