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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

​​​EUR/GBP, EUR/USD and GBP/USD await US non-farm payrolls​​​

​​​EUR/GBP, EUR/USD and GBP/USD await US non-farm payrolls after BoE governor’s comments​ which led to a sharp fall in the Pound Sterling.​

GBP Source: Adobe images

​​​EUR/GBP saw huge rally

EUR/GBP's rally off its near 2 1/2 year £0.8311 low has taken it close to the 55-day simple moving average (SMA) at £0.8445 which is expected to cap on Friday, together with Thursday's £0.8434 high. Further up resistance can be spotted at the £0.8463 high.

The breached August-to-October downtrend line at £0.8380 as well as the 25 September high at £0.8372 may act as short-term support.

EUR/GBP chart Source: TardingView.com
EUR/GBP chart Source: TardingView.com

​EUR/USD test key support

EUR/USD slid to but so far held around the $1.1002 September low, a fall through this level would be short-term bearish and put the mid-July high at $1.0948 back on the cards.

For now the cross continues to oscillate around its 55-day SMA at $1.1029 though with the 19 to 23  September lows at $1.1069-to-$1.1083 acting as resistance. While this zone caps, downside pressure should be maintained.

EUR/USD chart Source: TardingView.com
EUR/USD chart Source: TardingView.com

​GBP/USD drops further

GBP/USD has so far fallen to $1.3093 on dovish comments by the Bank of England (BoE) governor Andrew Bailey and remains on track for the 55-day SMA and the September low at $1.3057-to-$1.3002. This support zone is key for the medium-term trend as a fall through it could lead to the 200-day SMA at $1.2778 being revisited.

While the $1.30 mark underpins, the medium-term uptrend remains intact though. Minor resistance can be found at the early September high at $1.3239.

GBP/USD chart Source: TradingView.com
GBP/USD chart Source: TradingView.com

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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.

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