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

Dollar strength has returned thanks to Fed policymaker comments, with the result that USD/JPY continues its uptrend. 

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

GBP/USD is weak before retail sales data, but it is dangerously close to key support at $1.4050, the low from 16 March. If this holds we could see a bounce back towards $1.42, and then perhaps on towards $1.4320.

A break below this risks opening a trap door to the February lows around $1.3840.

EURUSD

EUR/USD has run to its rising trendline and indeed has moved briefly below it so far this morning.

If it can move back towards the 200-hour simple moving average ($1.12) then we could see dip buyers return and continue the sequence of higher highs and higher lows, with an initial target of $1.1250 and then on to the month highs near $1.1350.

USD/JPY

Dollar strength continues here, lifting the pair back to its highest level since 16-17 March.

A break above ¥113 would then head towards ¥114, as previously thought. Dips towards the ¥112.40 area should continue to be bought. 

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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.