Skip to content

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

​​EUR/GBP rallies, GBP/USD drops post UK budget as AUD/USD stems its decline​​​

​​​EUR/GBP rallies, GBP/USD drops as UK yields rally to a five-month high following the UK budget while AUD/USD stems its decline amid some buying interest.​​

EUR Source: Adobe image

​​​EUR/GBP bounces off support

EUR/GBP rallied from its £0.8318-to-£0.8296 support area after the UK autumn budget announcement, so far to the mid-October high at $0.838. Above it beckons the 55-day simple moving average (SMA) at £0.8393. If bettered, the early October high at £0.8434 would be next in line.

​Potential slips may encounter minor support around the 24 October high at £0.8352.

EUR/GBP chart Source: TradingView.com
EUR/GBP chart Source: TradingView.com

​GBP/USD capped by resistance

GBP/USD retested but has once more been rejected by the $1.30-to-$1.3045 resistance area following Rachel Reeve's first Labour budget in 14 years.

While this area caps, the recent downtrend remains intact with the April-to-October uptrend line at $1.2935 representing the first downside target. A fall through it would put last week's low at $1.2908 on the cards. Below it lies the June high at $1.2861. 

GBP/USD chart Source: TradingView.com
GBP/USD chart Source: TradingView.com

​AUD/USD tries to find support

​Even though AUD/USD briefly fell through its $0.658-58 support zone to $0.6537 on Wednesday, it looks as if the cross is trying to level out. Therefore, provided that $0.6537 underpins, a rise back towards the 200-day SMA at $0.6627 may be at hand. ​Were a slip through Wednesday's low at $0.6537 to occur, though, the 25 July low at $0.6515 and also the 31 July trough at $0.648 as well as the 78.6% Fibonacci retracement at $0.6477 would be in focus.

​Minor resistance above Wednesday's $0.6596 high remains to be seen along the 200-day SMA and the September low at $0.6623-to-$0.6627.

AUD/USD chart Source: TradingView.com
AUD/USD chart Source: TradingView.com

This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa 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

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Monday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.