EUR/GBP tries to recover from 5-month low, USD/JPY rallies to 3-month high as GBP/USD tests support
The greenback rallied as US inflation fell less than expected with USD/JPY rallying while EUR/GBP tries to recover and GBP/USD slips due to softer UK inflation print.
EUR/GBP tries to recover from five-month low
EUR/GBP dropped to £0.8499 before recovering. It thus bounced off the significant July-to-August lows at £0.8504 to £0.8493 below which lies the April 2021 low at £0.8472.
While this level underpins, the December-to-February downtrend line at £0.8542 may be back in view.
Further minor resistance is seen between £0.8547 and £0.8558, Friday's high, the December low and 1 February high, followed by more significant resistance at last Monday’s £0.8572 two-week high.
GBP/USD weighs on uptrend line
GBP/USD reversed its trend and dropped back to the October-to-February uptrend line and 200-day simple moving average (SMA) at $1.2562-61 which offers support for now.
A slip through Wednesday's $1.2556 intraday low would likely engage the early February low at $1.2519. Resistance sits at Wednesday's $1.2611 intraday high.
The medium-term trend will now be bearish while the cross stays below its $1.2691 Tuesday peak.
USD/JPY surges higher still
USD/JPY shot right through the minor psychological ¥150.00 mark and so far reached a four-month high at ¥150.88.
Above it beckon the October-to-November record highs at ¥150.91-94.
Potential slips may find support around the ¥150.16 early October high.
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