Sterling continues to decline amid political uncertainty in UK
GBP/USD is expected to move lower today, along with EUR/USD and AUD/USD, in a continuation of the wider trends of recent weeks.
EUR/USD continue to decline after rally into deep retracement
EUR/USD has been declining after a deep retracement into trendline and the 200-simple moving average (SMA) resistance. The wider downtrend remains in play and points towards a likely move back into the lows around $1.1111.
With the pair oversold, there is a chance of a rebound, yet further downside does look likely as the pair continues the bearish pattern. A break through $1.1264 would be required to negate the wider downtrend.
GBP/USD continues to decline after recent rebound
GBP/USD has experienced a consistent phase of losses over the course of the month, with that selling pressure continuing this week. Bearing last week’s rebound in mind, this current move looks like a return to that bearish theme.
Given that such a move below $1.2605 would confirm the break below the 76.4% retracement at $1.2659, it would also provide a clue that the pair could ultimately head back towards the long-term low of $1.2435. A rise through $1.2748 would be required to negate the bearish trend that is currently in play.
AUD/USD turning lower following recent rebound
AUD/USD managed to muster a rebound into the crucial $0.6934 swing-high last week, with that level of resistance continuing to play out during recent trading days.
With the price turning lower this morning, there is a good chance the sellers will gain prominence as the day continues. Watch for an hourly close below the $0.6912 level to signal a likely bearish phase coming into play. Only with a break through the $0.6934 peak would we see a more bullish picture form.
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
