EUR/USD, GBP/USD likely to decline much further while EUR/GBP stabilises
EUR/USD, GBP/USD likely to decline much further while EUR/GBP stabilises post weaker-than-expected UK inflation print.
EUR/USD drops further
EUR/USD's fall through the 200-day simple moving average (SMA) at $1.0872 has now also turned our weekly forecast bearish with the August low at $1.0778 representing the next downside target.
Minor resistance above the 200-day SMA at $1.0872 can be spotted at the 1 October low at $1.0900.
EUR/GBP bounces back
EUR/GBP recovered from the £0.8326-to-£0.8311 support zone amid weaker-than-expected UK inflation data. Were it to give way, the 21 March 2022 low at £0.8296 would be next in line, together with the January 2022 and December 2019 lows at £0.8285-to-£0.8277.
Minor resistance above Wednesday's £0.8380 high can be seen along the August-to-October downtrend line at £0.8385.
GBP/USD falls to two-month low
GBP/USD's tumble through the September low at $1.3022 and the $1.3000 mark following a weaker-than-expected UK inflation print changed our weekly outlook to a bearish one with the $1.2793-to-$1.2665 region being targeted. The tentative April-to-October uptrend line at $1.2898 represents the next downside target.
Because of inverse polarity previous key resistance at $1.3000-to-$1.3022 should now act as resistance.
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.
