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 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 remain bid ahead of FOMC minutes

​​Outlook on EUR/USD, EUR/GBP and GBP/USD as the US dollar remains under pressure ahead of Fed speeches and FOMC.

USD Source: Bloomberg

​​​EUR/USD has broken through resistance

EUR/USD's advance above the 5 February high at $1.0805 is short-term bullish. Above the 200-day simple moving average (SMA) at $1.0826 and Tuesday's $1.0839 high beckon the early February high and 55-day SMA at $1.0881-97.

​Potential slips are expected to find support around the 5 February high at $1.0805 and along the breached uptrend line at $1.0782.

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

​EUR/GBP's recovery off five-month low stalls

EUR/GBP's bullish reversal off its current £0.8499 February low briefly exceeded the 6 February high at £0.8573 by rising to £0.8578 on Tuesday before retracing lower. As long as this resistance zone caps, further sideways trading is likely to be seen.

​For the bulls to be in control a rise and daily chart close above £0.8578 needs to be seen in which case the 200-day SMA at £0.8587 would be back in sight.

​Support below Monday's £0.8538 low sits between the July-to-August lows at £0.8504 to £0.8493.

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

​GBP/USD surges back up again

​Not only did GBP/USD manage to hold above its October-to-February uptrend line and 200-day SMA at $1.2565 since last week but the cross then also rallied back to the 55-day SMA at $1.2667 on Tuesday. It acted as resistance, though.

​It and last week's high at $1.2691 need to be bettered for the $1.275 region to be back in sight. This scenario will remain in play while the early February low at $1.2519 underpins.

​While $1.2691 caps, however, the bearish medium-term trend will remain valid.

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

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

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. Please see important Research Disclaimer.

Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

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.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Tuesday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

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.