CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. 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 financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

FX levels to watch – EUR/USD, GBP/USD, EUR/GBP

GBP/USD looks likely to turn higher, with question marks over the direction of EUR/USD. However, comparing both European currencies, it looks like we have turned a corner for EUR/GBP.

IG Analyst

Publication date : 2022-07-01T21:56:05+0100

Euro notes

Source: Bloomberg

EUR/USD consolidating within triangle formation

EUR/USD is creating lower highs and higher lows at the moment, with the pair failing to truly push out of the 76.4% retracement seen last week. This triangle formation means that we need to keep an eye out for the key near-term swing high and swing low for the directional guidance.

As such, watch out for an hourly close above $1.1980 for a bullish view, or an hourly close below $1.1824 for a bearish view.

EUR/USD chart

EUR/USD chart

EUR/USD chart

GBP/USD looks set for further upside

GBP/USD is selling off this morning, following a crucial break through $1.2979 resistance. This provides a bullish short-term view, with the higher low of $1.2852 coupled with the recent rally through $1.2979 indicating the likeliness of further upside.

With that in mind, it is likely the current weakness is going to be short-lived, with a rally likely unless we break below $1.2905. Should that happen then we would be looking at a retracement of the wider $1.2852-$1.2995 leg.

GBP/USD chart

GBP/USD chart

GBP/USD chart

EUR/GBP upside unlikely to last

EUR/GBP is seeing a strong start to the week, following on from last week’s head and shoulders completion. With the price currently at the 50% retracement, it looks like we are going to see a Fibonacci retracement before we start to move lower once more.

As such, watch out for another leg lower from here, with a break through £0.9238 required to negate this bearish view caused by last week’s head and shoulders formation.

EUR/GBP chart

EUR/GBP chart

EUR/GBP chart

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