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.

FX levels to watch: EUR/GBP, GBP/USD and NZD/USD

The dollar is in control, with GBP/USD and NZD/USD selling off sharply. Meanwhile, EUR/GBP looks set to continue upwards over the medium term.

IG Analyst

Publication date : 2018-10-26T09:47:18+0100

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EUR/GBP trading at channel resistance

EUR/GBP has managed to maintain its channel well this week, with the recent rally bringing us back into the upper echelons of the channel. This points towards a potential retracement before long.

However, we have not seen any signs of such a move yet and it is therefore very possible that we could see the price break from this formation. Any pullback from here would simply look like a retracement before we push higher once more, with a break below £0.8797 required to negate the current uptrend.

EUR/GBP chart

EUR/GBP chart

EUR/GBP chart

GBP/USD tumbles after double top completion

GBP/USD has been declining heavily since breaking the double top neckline, with yesterday’s rally back into that neckline proving a strong selling opportunity. For now, there is a chance that we will retrace upwards before long given the strength of yesterday’s downturn.

Should that occur, it would look like a selling opportunity as long as the price does not break through $1.2922. There is a strong chance of a short-term rebound soon, given the way that the stochastic is coiling into the apex of a descending triangle while the price trades near the key $1.2785 swing low.

GBP/USD chart

GBP/USD chart

GBP/USD chart

NZD/USD expected to keep falling after recent decline

NZD/USD managed to post a 61.8% retracement yesterday, coming off the back of a double top formation, sending the pair sharply lower.

The wider downtrend pointed towards the rally seen earlier in the month, providing a retracement that ultimately topped off at the 61.8% level. Now that we have resolved that retracement, we are likely to sell off into the $0.6424 swing low to continue the downtrend that has been in play over the past six months.

NZD/USD chart

NZD/USD chart

NZD/USD chart

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