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

More declines for the pound this morning, while the dollar-yen breakout goes on. 

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.
Yen and dollar notes
Source: Bloomberg

GBP/USD declines continue

Further declines this morning have taken the pair into levels not seen since 1985. A yearly chart would suggest the next big level would be $1.1485, with the low of the year at $1.0250.

For the moment it seems the pair will be no respecter of oversold conditions on indicators, but a bounce back towards $1.2850 might provide a fresh selling opportunity.

PMI data from the UK might arrest the decline, but it looks like rallies will keep getting sold.

EUR/GBP hits new 2016 highs

This pair has made a new high for the year, boosted more by sterling weakness than euro strength. The £0.88 area is the next one to watch, having stifled gains back in the first quarter of 2013.

With the pair not overbought intraday there looks to be some more headroom here, so moves back to £0.87 could continue to find buyers.

USD/JPY downtrend may have come to an end

Perhaps the 2016 downtrend has finally finished. The price has pushed through the downtrend line in a resolute fashion.

The 21 September high at ¥102.78 and then the 13 September high of ¥103.35 now come into view, while a pullback towards ¥101.80 could see new buyers emerge. 

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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.