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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.

FX levels to watch – EUR/USD, GBP/USD

The pound has suffered in the wake of the election, while dollar strength is driving EUR/USD lower. 

Dollar notes
Soource: Bloomberg

GBP/USD $1.27 seems to be holding for now

Given the sharp rally in GBP/USD since the March lows, it is not surprising to have a significant retracement. It is only the fact that this has happened in two days rather than around a week that has amplified the impression of a big move.

The $1.27 area appears to be holding well, and if it recovers from here, a move back above $1.28 could still be possible. 

EUR/USD pushes lower

In case of further EUR/USD weakness, $1.11 is still the next area to watch. If this holds then a consolidation period between here and $1.13 could be in the offing.

Otherwise, a loss of $1.10 would suggest a move towards $1.10 and lower. A breakout from $1.13 would head towards $1.1366. 

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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.

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