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

Risk-off moves this morning predominate, on a busier day for macro data. 

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 and dollar
Source: Bloomberg

GBP/USD eyes $1.44

Further losses this morning ahead of the CPI reading suggest that we will see a move below $1.42 and towards the rising daily trendline.

If this holds then a bounce may materialise to take the pair back towards $1.44. Below the trendline support levels lie around $1.4050 and then $1.3840.

EUR/USD could see resistance at $1.1350

Three days of losses indicate that the pair is heading towards $1.11 as a first target, and then below this to the 200-day simple moving average at $1.1045.

With both the relative strength index and stochastics now bearish on the daily chart we may see further selling of rallies. Any move higher will face resistance around $1.1350 and then $1.14.

USD/JPY eyes ¥110

Having rallied off the ¥111 level, we now see whether the pair can gain fresh traction and head towards resistance around ¥114.

A failure to push higher will result in another test of recent lows with ¥110 the next target to watch on the downside. 

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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.