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 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/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.
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.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market.
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
