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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 slips while GBP/USD rises post UK GDP with USD/CNH remaining side-lined

​​Outlook on EUR/GBP, GBP/USD and USD/CNH post UK GDP and plethora of China data.

USD/CNH Source: Bloomberg

​​​EUR/GBP slips to £0.86 region

​​EUR/GBP’s drop from its £0.8714 December high has taken it to Tuesday’s £0.8587 low which is back in sight following an improved month-on-month (MoM) UK gross domestic product (GDP) number which was negated by a drop of the three-month average, though.

​A fall through £0.8587 would put the 15 December low at £0.8572 on the map and perhaps also the December low at £0.855.

​Minor resistance sits at Monday’s £0.8621 high and Friday’s £0.8634 high.

EUR/GBP chart Source: IT-Finance.com
EUR/GBP chart Source: IT-Finance.com

​GBP/USD nears mid-December peak

​GBP/USD’s rise from its two-week low at $1.2611 is ongoing amid slightly better-than-expected MoM UK GDP data with the mid-December high at $1.2794 and the December five-month peak at $1.2828 representing upside targets.

​Upside pressure should remain in play while Wednesday’s low at $1.2687 underpins.

Above it, minor support can be found at Wednesday’s $1.2745 high and below it along the November-to-January uptrend line, 21 December and current January lows at $1.2666 to $1.2611.

GBP/USD chart Source: IT-Finance.com
GBP/USD chart Source: IT-Finance.com

​USD/CNH remains in a tight sideways trading range

​USD/CNH’s decline from its September CN¥7.3681 one-year high, amid a depreciating greenback, has so far taken the cross to an eight-month low at CN¥7.0875 before the cross recovered and started trading in a low volatility trading range along the 200-day simple moving average (SMA) at CN¥7.1782.

​China consumer prices falling for a third straight month while imports rose less than expected but exports growth beat forecasts as producer prices fell more than expected didn’t change the state of affairs on Friday.

​The 200-day SMA at CN¥7.1782 currently acts as resistance. While the next higher 55-day SMA and this week’s high at CN¥7.1897 to CN¥7.1905 cap, further sideways trading is at hand. ​Minor support below Thursday’s CN¥7.1617 low can be spotted at Monday’s CN¥7.1545 low.

USD/CNH chart Source: IT-Finance.com
USD/CNH chart Source: IT-Finance.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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