FX Levels to watch – GBP/USD, EUR/USD, USD/JPY

Weakness in sterling appears to be accelerating, while the euro is in full retreat as well.

Japanese yen and dollar notes
Source: Bloomberg

GBP/USD moves lower
The final day of the week sees the pair pushing below $1.44, which had held as key support all week.

As noted yesterday, there is a clutch of support underneath the current price, including the 100-day simple moving average (SMA), 50-day SMA and then the first weekly support pivot at $1.4305. If this is broken then the next area is the rising trend off the February lows at $1.4250.

GBP/USD daily chart

EUR/USD heading downwards
Having opened below key support at $1.1387, it now looks like the next move is firmly downwards for the pair, and while the 50-day SMA at $1.1297 may provide some support, a rising dollar could prompt investors to sell into strength, with a target around the April lows of $1.1220. A turn higher will need to clear the $1.1387 area, which having been support is now resistance. 

EUR/USD daily chart

USD/JPY still bullish
The rally here has faltered shy of ¥109.50, and with further losses taking the pair down towards ¥108.50. For the moment, the outlook is still bullish, and a real dip towards ¥108 may provide a buying opportunity.

A close below ¥107.50 would however negate this outlook, potentially raising the prospect of a move to ¥106.70 and below. 

USD/JPY daily chart

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