CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.

FX levels to watch – EUR/USD, GBP/USD

The pound has suffered in the wake of the election, while dollar strength is driving EUR/USD lower. 

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Dollar notes
Soource: Bloomberg

GBP/USD $1.27 seems to be holding for now

Given the sharp rally in GBP/USD since the March lows, it is not surprising to have a significant retracement. It is only the fact that this has happened in two days rather than around a week that has amplified the impression of a big move.

The $1.27 area appears to be holding well, and if it recovers from here, a move back above $1.28 could still be possible. 

EUR/USD pushes lower

In case of further EUR/USD weakness, $1.11 is still the next area to watch. If this holds then a consolidation period between here and $1.13 could be in the offing.

Otherwise, a loss of $1.10 would suggest a move towards $1.10 and lower. A breakout from $1.13 would head towards $1.1366. 

This information has been prepared by IG, a trading name of IG 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. 

CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.