EUR/USD, EUR/GBP and GBP/USD pause ahead of rate decisions
EUR/USD and GBP/USD encounter resistance ahead of central bank meetings, EUR/GBP hovers above support pre-BoE.
EUR/USD’s rally stalls ahead of the ECB meeting
Having risen strongly over the past three days, EUR/USD is beginning to encounter resistance ahead of the European Central Bank’s (ECB) press conference which usually generates some intraday volatility. Both the 55-day simple moving average (SMA) and previous channel support line, now because of inverse polarity, resistance line at $1.1305 to $1.131 cap, together with yesterday’s high at $1.133.
Intraday support is found between the late December and early January lows at $1.1274 to $1.1272. Further, more significant, support sits within the $1.1235 to $1.1222 December lows, only a currently unexpected drop through which would engage the $1.1186 November trough.
In case of renewed upside being seen and yesterday’s high at $1.133 being overcome, the late November and December highs at $1.1382 to $1.1386 would be eyed next.
EUR/GBP hovers above multi-year key support ahead of BoE rate decision
EUR/GBP continues to float above the £0.8313 to £0.8277 key support area ahead of the Bank of England’s (BoE) monetary policy meeting. The support consists of the December 2016, April 2017, December 2019 and February 2020 lows. Because of the multitude of lows seen in this area over several years it is technically important and is likely to continue to hold for now.
The cross would need to exceed this week’s high at £0.836 in order for the November low, 18 and 21 January highs and two-month resistance line at £0.8377 to £0.8381 to be in play.
Initial support comes in at the 11 January low at £0.8324.
GBP/USD rally is taking a breather ahead of BoE meeting
GBP/USD's advance from its late January low at $1.3365 has practically taken it back to the 61.8% Fibonacci retracement of its January decline at $1.3599. Together with yesterday’s high at $1.3587 it offers resistance whilst awaiting the BoE rate decision.
Support is seen between the mid-November high, 38.2% Fibonacci retracement and the 6 January low at $1.3513 to $1.349.
Resistance above the $1.3587 to $1.3599 region can be spotted at the 9 November high at $1.3607.
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.
