EUR/GBP tries to recover from 5-month low, USD/JPY rallies to 3-month high as GBP/USD tests support
The greenback rallied as US inflation fell less than expected with USD/JPY rallying while EUR/GBP tries to recover and GBP/USD slips due to softer UK inflation print.
EUR/GBP tries to recover from five-month low
EUR/GBP dropped to £0.8499 before recovering. It thus bounced off the significant July-to-August lows at £0.8504 to £0.8493 below which lies the April 2021 low at £0.8472.
While this level underpins, the December-to-February downtrend line at £0.8542 may be back in view.
Further minor resistance is seen between £0.8547 and £0.8558, Friday's high, the December low and 1 February high, followed by more significant resistance at last Monday’s £0.8572 two-week high.
GBP/USD weighs on uptrend line
GBP/USD reversed its trend and dropped back to the October-to-February uptrend line and 200-day simple moving average (SMA) at $1.2562-61 which offers support for now.
A slip through Wednesday's $1.2556 intraday low would likely engage the early February low at $1.2519. Resistance sits at Wednesday's $1.2611 intraday high.
The medium-term trend will now be bearish while the cross stays below its $1.2691 Tuesday peak.
USD/JPY surges higher still
USD/JPY shot right through the minor psychological ¥150.00 mark and so far reached a four-month high at ¥150.88.
Above it beckon the October-to-November record highs at ¥150.91-94.
Potential slips may find support around the ¥150.16 early October high.
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
