Brexit fears hold back GBP/USD, while EUR/USD, and AUD/USD gain ground

EUR/USD and AUD/USD gain ground on dollar weakness, while Brexit fears hold back GBP/USD as we head into a critical weekend.

​EUR/USD rally highlights likely push higher before long

EUR/USD managed to break through the $1.2134 swing high yesterday, bringing an end to the retracement phase seen over the course of the week. That rise does point towards a likely push through the $1.2174 peak before long, with the pair looking to continue the uptrend seen over recent months.

With that in mind, the weakness we have seen over the course of this morning looks like a short-term retracement before we push higher once again. As such, bullish positions are favoured unless we see a break below the $1.2059 swing low.

GBP/USD underperforms as Brexit fears increase

GBP/USD has been on the back foot as we approach what looks like a critical weekend for Brexit talks.

The recent rise into the 76.4% Fibonacci retracement level provided us with another bearish turn, with price now approaching the critical $1.3224–$1.3245 support zone. With that in mind, it makes sense to watch out for further downside in the event that this support zone breaks.

AUD/USD starts to ease back after recent surge

If GBP/USD is the underperformer, then AUD/USD is the outperformer, with the pair pushing sharply higher over the course of the week. That rise has taken us into the highest level since June 2018.

With that in mind, further upside looks highly likely, with the risk-on sentiment brought about by the vaccine being enhanced by sharp gains in commodity prices. As such, short-term downside provides entry opportunities to the upside. That bullish outlook holds unless we see a break below the recent swing low of $0.7373.


This information has been prepared by IG, a trading name of IG Markets 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.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. All share prices are delayed by at least 20 minutes. Prices are indicative only.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.