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

​​EUR/GBP rallies, GBP/USD drops post UK budget as AUD/USD stems its decline​​​

​​​EUR/GBP rallies, GBP/USD drops as UK yields rally to a five-month high following the UK budget while AUD/USD stems its decline amid some buying interest.​​

EUR Source: Adobe image

​​​EUR/GBP bounces off support

EUR/GBP rallied from its £0.8318-to-£0.8296 support area after the UK autumn budget announcement, so far to the mid-October high at $0.838. Above it beckons the 55-day simple moving average (SMA) at £0.8393. If bettered, the early October high at £0.8434 would be next in line.

​Potential slips may encounter minor support around the 24 October high at £0.8352.

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

​GBP/USD capped by resistance

GBP/USD retested but has once more been rejected by the $1.30-to-$1.3045 resistance area following Rachel Reeve's first Labour budget in 14 years.

While this area caps, the recent downtrend remains intact with the April-to-October uptrend line at $1.2935 representing the first downside target. A fall through it would put last week's low at $1.2908 on the cards. Below it lies the June high at $1.2861. 

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

​AUD/USD tries to find support

​Even though AUD/USD briefly fell through its $0.658-58 support zone to $0.6537 on Wednesday, it looks as if the cross is trying to level out. Therefore, provided that $0.6537 underpins, a rise back towards the 200-day SMA at $0.6627 may be at hand. ​Were a slip through Wednesday's low at $0.6537 to occur, though, the 25 July low at $0.6515 and also the 31 July trough at $0.648 as well as the 78.6% Fibonacci retracement at $0.6477 would be in focus.

​Minor resistance above Wednesday's $0.6596 high remains to be seen along the 200-day SMA and the September low at $0.6623-to-$0.6627.

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

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