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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.

​​GBP/USD gains and EUR/GBP slides on stronger British pound while USD/JPY stays range bound

​​Outlook on GBP/USD, EUR/GBP and USD/JPY ahead of US CPI data.

Trader Source: Bloomberg

​​​​GBP/USD rises for six straight days

GBP/USD’s rise from its early October seven-month low at $1.2038, for six straight days, remains on track to reach the July-to-October downtrend line at $1.2366 despite misses on UK industrial and manufacturing production as well as construction output data.

​A rise and daily chart close above the three-month downtrend line at $1.2366 should put the 200-day simple moving average (SMA) at $1.2445 on the map.

​Potential slips should find support between the $1.2271 late September high and Monday’s $1.2264 low. Further minor support comes in at the 27 September low at $1.2111 and Friday’s low at $1.2106. While these levels hold, an upside bias remains in play.

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

​EUR/GBP slid through support at £0.8631

EUR/GBP's decline from its £0.8706 September high has taken it through its late September low at £0.8631 towards the late August high and the 55-day SMA at £0.861 to £0.8607 on general British pound appreciation.

​Another potential downside target is the mid-September low at £0.857.

​Immediate resistance comes in along the one-month tentative downtrend line at £0.8642 ahead of Thursday’s £0.8691 high. While trading below these levels, downside pressure should continue to dominate

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

​USD/JPY remains side-lined around the ¥149.00 level

USD/JPY's sell-off from its 10-month high at ¥150.16 amid fears of Bank of Japan (BoJ) intervention fears took it to ¥147.29 in early October before the cross levelled out around the ¥149.00 mark.

​Despite Japan machine orders falling by 0.5% in August, USD/JPY is little changed on Thursday. Only a fall through this week’s low at ¥148.17 would probably provoke a slide towards the ¥147.29 low taking place.

Likewise only a rise above Friday’s high at ¥149.53 would put the psychological ¥150.00 region back on the map. For now the medium-term bullish trend stays intact, though.

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

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