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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: GBP/USD, EUR/USD and AUD/USD

EUR/USD and GBP/USD still remain within a downtrend for now, yet with AUD/USD having broken higher, we are seeing it come back to respect Fibonacci support.

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GBP/USD drop could point towards the next leg lower

GBP/USD fell below the $1.2794 support level yesterday, raising the chances of further downside for the pair.

The recent rebound always looked like a retracement, yet the size of that rebound is always going to be difficult to anticipate. However, with the failure to create higher lows, we have seen a potential answer to that question. With that in mind, the rally we are seeing this morning is likely to be a retracement of yesterday’s sell-off. Thus, unless we break above the $1.2883 mark, another turn lower looks likely before long.

GBP/USD chart

EUR/USD turns lower from trendline resistance

EUR/USD has been selling off from trendline resistance this week, with a particularly deep rally coming close to the bullish breakout threshold of $1.15. However, for now we are caught between two trendlines, with the price rallying back towards the resistance once more.

A break through $1.15 would point towards a more bullish outlook coming into play. Until then, there is a good chance we will see the pair turn lower to continue the wider bearish picture.

EUR/USD chart

AUD/USD retraces into Fibonacci support after recent breakout

AUD/USD is turning higher from the 76.4% retracement, following a recent breakout through $0.7315 resistance. That break negates the wider bearish outlook, pointing towards a potential period of upside.

With that in mind, the respect of the 76.4% retracement level at $0.7205 points towards a possible resumption of that bullish theme from here on in. As such, watch out for further gains, with a more bearish view coming in the event of a break below $0.7164.

AUD/USD chart

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