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

Weakness in sterling appears to be accelerating, while the euro is in full retreat as well.

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.
Japanese yen and dollar notes
Source: Bloomberg

GBP/USD moves lower
The final day of the week sees the pair pushing below $1.44, which had held as key support all week.

As noted yesterday, there is a clutch of support underneath the current price, including the 100-day simple moving average (SMA), 50-day SMA and then the first weekly support pivot at $1.4305. If this is broken then the next area is the rising trend off the February lows at $1.4250.

EUR/USD heading downwards
Having opened below key support at $1.1387, it now looks like the next move is firmly downwards for the pair, and while the 50-day SMA at $1.1297 may provide some support, a rising dollar could prompt investors to sell into strength, with a target around the April lows of $1.1220. A turn higher will need to clear the $1.1387 area, which having been support is now resistance. 

USD/JPY still bullish
The rally here has faltered shy of ¥109.50, and with further losses taking the pair down towards ¥108.50. For the moment, the outlook is still bullish, and a real dip towards ¥108 may provide a buying opportunity.

A close below ¥107.50 would however negate this outlook, potentially raising the prospect of a move to ¥106.70 and below. 

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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.