Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Euro rally is starting to lose upside momentum while cable remains bid

The euro’s gains are starting to slow but GBP/USD is holding up well.

Video poster image

​EUR/USD is beginning to run out of steam ahead of resistance 

EUR/USD is still trying to break out of its November-to-January channel but is losing upside momentum along the channel resistance line. 

Upside targets are the October-to-early-November lows at $1.1513 to $1.1539. These are likely to stall the current rally in case it doesn’t run out of puff beforehand. Should this not be the case, the advance may extend to the September low at $1.1563. 

Good support remains to be seen between the late November and December highs at $1.1386 to $1.1383. While above there, an upside bias remains in play. 

EUR/USD chart Source: IT-Finance.com
EUR/USD chart Source: IT-Finance.com

EUR/GBP trades along the 55-day simple moving average (SMA) at £0.8352 

EUR/GBP continues to range trade above this year’s low to date at £0.8324 and now flirts with the 55-period SMA on the 240-minute chart at £0.8352 with the £0.8366 to £0.8373 resistance zone capping at present. This comes as no surprise since it has already acted as support late last year and as resistance early this year.  

While the next higher early January high at £0.8418 isn’t exceeded, the longer-term September-to-January downtrend stays valid. 

Only a fall through the recent low at £0.8324 would push the December 2016, April 2017, December 2019 and February 2020 lows at £0.8313 to £0.8277 to the fore. It is where key long-term support can be found. 

EUR/GBP chart Source: IT-Finance.com
EUR/GBP chart Source: IT-Finance.com

GBP/USD continues to trade above the 200-day SMA at $1.3691 

There is no stopping the GBP/USD rally. Once the 23 September high at $1.3751 has been exceeded, the October high at $1.3835 will be targeted. Further up lies the September peak at $1.3913 around which the currency pair is likely to at least take a short-term breather.   

Slips should find support along the 200-day SMA at $1.3691. Further down minor support can be found at the early October highs at $1.3658 to $1.3648. 

GBP/USD chart Source: IT-Finance.com
GBP/USD chart Source: IT-Finance.com

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.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.