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

Sterling weakness has carried over into the new week, while the euro is aiming to bring its long fall to an end. 

Dollar and pound
Source: Bloomberg

GBP/USD eyes $1.2477

The decline goes on here, having dropped back from $1.2650 on 11 November. Now we have hit support at $1.2322, which was resistance in mid-October.

A push below here could see the price head towards the October lows at $1.2114, where the pair formed a base during the second half of the month.

A rally needs to clear $1.2477 to maintain forward momentum.

GBP/USD

EUR/USD could see March 2015 low

Having slumped by 5% peak-to-trough over the past three weeks, perhaps the euro is due some respite, if only in the form of short-covering.

We would really need to see a move through $1.0750 to create a new higher high, but the odds of success in buying EUR/USD now look better than they have at any time since late October.

This more bullish outlook would be negated if the price moves below $1.0550, with the break of the December 2015 low at $1.0525 then heading towards the March 2015 low at $1.0445. 

EUR/USD

USD/JPY manages to move higher again

The pair continues to defy expectations, moving higher yet again on Friday. Dip buyers may still do well here if another sell-off develops, although heading into the Thanksgiving holiday there may be some profit-taking.

The price has now hit the key ¥111 area that was resistance in July and previously support in April. It would need a move below ¥109 to really indicate a downward leg has begun.

USD/JPY

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