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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/USD, EUR/GBP and GBP/USD consolidate​​​

​​Outlook on EUR/USD, EUR/GBP and GBP/USD ahead of UK inflation data releases

EUR/USD Source: Bloomberg

​​​EUR/USD consolidates below November and December peaks

​Last week EUR/USD topped out at $1.1009, marginally below its November peak at $1.1017, as comments by European Central Bank (ECB) president Christine Lagarde, in which she said interest rate cuts had not been discussed during the last week’s policy meeting, provoked a sell-off.

​EUR/USD thus dropped back below its late August high at $1.0945 to $1.0889. Further minor support is seen around the 14 November high at $1.0887 and the 22 November low at $1.0852. Only a rise above $1.1009 to $1.1017 would put the 10 August high at $1.1065 on the map.

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

​EUR/GBP trades around the £0.8600 mark

​EUR/GBP’s drop from Thursday’s £0.8634 high to Friday’s £0.8572 low has been followed by a bounce back to the £0.86 region around which it is now trading ahead of Monday’s Germany Ifo business climate and Wednesday’s UK inflation Producer Price Index (PPI) and RPI data releases.

​Resistance above £0.8634 is seen along the 200- and 55-day simple moving averages (SMA) at £0.8662 to £0.8668 and support below Friday’s £0.8572 low around the current December trough at £0.855.

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

​GBP/USD comes off last week’s near four-month high

GBP/USD, which last week rose to a near four-month high at $1.2794, is seen slipping towards its $1.2617 mid-August low amid negative divergence on the daily Relative Strength Index (RSI), pointing to a potential retracement lower soon being witnessed.

​Below $1.2617 the November-to-December uptrend line can be found at $1.2542. Resistance sits at the November and current December highs at $1.2733 to $1.2794. If overcome, the 10 August high at $1.2819 would be eyed next.

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

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