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

It looks like a busy day for sterling, as the Bank of England releases its latest inflation report, while USD/JPY looks set to test key support.

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.
Euro and dollar notes
Source: Bloomberg

GBP/USD uptrend appears to be intact

The pair is now close to the December peak at $1.2760. A break above here leaves the price free to test $1.2980 and then $1.3090.

The Bank of England meeting and inflation report will provide volatility, but the uptrend remains intact unless we see a move below $1.2550. 

EUR/USD rally set to continue, despite dip

There is no sign of the EUR/USD rally stopping, with a dip yesterday below $1.0750 bringing out the buyers. The next areas on the upside to watch are $1.0826 and $1.0880, with the 200-day simple moving average (SMA) at $1.10 beyond this.

We will need to see a daily close below the weekly pivot at $1.0710 to suggest a turning point has been reached. 

USD/JPY bears target ¥112.50

Since mid-January, the ¥112.50 area has provided firm support. So while bears may have been able to knock the pair back from ¥114 yesterday, keeping the downtrend intact, they now need to push the price below ¥112.50 to open the way to ¥110.

On the upside, potential resistance lies at ¥114 and then ¥115.50 for USD/JPY.

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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.