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CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

​​EUR/USD, EUR/GBP and GBP/USD slip on stronger dollar and UK retail sales

​​Outlook on EUR/USD, EUR/GBP and GBP/USD as greenback regains lost ground and UK retail sales come in much stronger-than-expected.

EUR Source: Bloomberg

​​​EUR/USD drops as greenback regains lost ground

EUR/USD ran out of steam slightly below its mid-February 2022 low at $1.128 earlier this week when it managed to rally to $1.1275 before coming off again on profit taking ahead of the weekend and as the U.S. dollar regained some recently lost ground.

​The April peak at $1.1095 may soon be reached but together with the mid-April high at $1.1075 should act as support on Friday, were it to be reached at all.

​Immediate minor resistance can be found at Thursday’s $1.1175 low and further resistance around the $1.12 mark. ​Above this week’s high at $1.1275 lie the 61.8% Fibonacci retracement of the 2020-to-2022 bear market and the mid-February 2022 low at $1.128.

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

​EUR/GBP comes off its six-week highs

EUR/GBP's rally to its six-week high at £0.8701 as UK inflation slowed more-than-expected is being followed by a short-term decline on the back of stronger-than-expected UK retail sales.

​British retail sales in June were boosted by unusually hot weather and a rebound in food sales after a dip the month before when public holidays disrupted normal spending patterns. June retail sales came in at 0.7% versus May, a bigger increase than the 0.2% forecast by economists.

​A slip back towards the 55-day simple moving average (SMA) at £0.8617 may thus ensue. ​Resistance remains to be seen at this week’s £0.8701 high. ​If a daily chart close above £0.8701 were to unfold, the 200-day SMA at £0.873 would be next in line.

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

​GBP/USD reverses its trend from its 16-month high

​Stronger-than-expected UK retail sales on the back of slowing UK inflation seen earlier this week has led to GBP/USD topping out at its $1.3142 16-month high.

​The cross is now revisiting its $1.2848 June peak which may offer support. If not, the $1.269 minor support zone may be reached next.

​Immediate resistance can be found at Thursday’s $1.2964 high and around the minor psychological $1.30 mark.

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

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