EUR/GBP slides while GBP/USD and USD/CNH gradually advance
Outlook on EUR/GBP, GBP/USD and USD/CNH as US is shut for Martin Luther King Jr. holiday.
EUR/GBP weighs on the £0.86 region
EUR/GBP's drop from its £0.8714 December high has taken it to last week’s £0.8587 low which remains in sight after President Lagarde reassured markets on Friday that interest rates will fall once inflation is under control.
A drop through last week’s £0.8587 low would eye the 15 December low at £0.8572 and perhaps also the December low at £0.855.
Minor resistance remains to be seen at last week’s £0.8621 high and the previous Friday’s £0.8634 high.
GBP/USD nears mid-December peak
GBP/USD's advance from its early January low at $1.2611 still has the mid-December high at $1.2794 and the December five-month peak at $1.2828 in its sights.
Upside pressure should play a dominant role while Wednesday’s low at $1.2687 holds.
Minor support at Wednesday’s $1.2745 high is currently being tested. Below it lies good support along the November-to-January uptrend line, 21 December and current January lows at $1.2679 to $1.2611.
USD/CNH continues to gradually advance
USD/CNH's gradual advance from its eight-month low at CN¥7.0875 along the 200-day simple moving average (SMA) at CN¥7.1797 has so far taken it to the 55-day SMA at CN¥7.1883 and Friday’s high at CN¥7.193. This despite the Chinese central bank sticking to its medium-lending rate amid rate cut expectations.
Support below the 200-day SMA at CN¥7.1797 and the January tentative uptrend line at CN¥7.1735 is seen at Thursday’s CN¥7.1617 low.
A rise above Friday’s CN¥7.193 high could lead to the December peak at CN¥7.2 being back in focus.
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