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

Sterling strength has been driving GBP/USD higher and EUR/GBP lower. Meanwhile, EUR/USD continues to consolidate, as we await the triangle breakout.

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.
Pound sterling
Source: Bloomberg

EUR/USD triangle continues to dictate

EUR/USD has rallied back up to the top end of a symmetrical triangle formation once more this morning, with the pair continuing to consolidate.

The breakout signal remains a move through the first swing high or low. As such, watch out for an hourly close above $1.1941 for a bullish outlook, or below $1.1868 for a more bearish view.

GBP/USD breaks higher once more

Yesterday’s GBP/USD spike took the pair to a near month-long high, in a move that provided a continuation of the bullish reversal that has been forming in recent weeks. This bullish phase looks like a retracement of the wider move from that $1.3269 high. As such, it makes sense to look for $1.3080 and $1.3152 (61.8% and 76.4%) as targets for when this rally might come back under pressure.

Further upside looks likely, yet there is a threat that we could start to see the pair retrace yesterday’s sharp rally. A bullish outlook remains as long as we remain above $1.2909, with a move lower providing us with a potential bullish entry at Fibonacci support.

EUR/GBP trading lower, as wedge forms

EUR/GBP dropped into a new lower low yesterday, following a 76.4% retracement earlier in the week. We are now seeing a move higher from trendline support, indicating the creation of a falling wedge pattern. That is a bullish formation, which points towards an eventual bullish breakout.

However, until we see a move through £0.9227, a bearish outlook remains, with the 61.8% retracement at £0.9191 looking like an attractive area for shorts if we get up to the point.

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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.