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

Hawkish comments from the Fed lifted the dollar, putting downward pressure on the euro and sterling. 

Dollar and pounds
Source: Bloomberg

GBP/USD heading for the low, low land?

GBP/USD finds itself moving back towards the $1.2347 low seen on 7 February. Dollar strength continues to bear down on the pair, but we look to see if the bulls can mount a defence here after nearly 200 points of losses in the past three days.

Momentum clearly lies on the downside, so any sharp rally could be met with fresh selling and unless we see the price move back above $1.2450, the bears remain in charge.

GBP/USD price chart

EUR/USD under pressure

Continuing hawkish Federal Reserve talk has lifted the dollar and put firm downward pressure on EUR/USD. The $1.0520 level and $1.05 below it are now the areas to watch.

A rally back towards $1.06 could bring out fresh sellers, with only a close back above $1.06 suggesting that the buyers are back in charge.

EUR/USD price chart

USD/JPY to go higher

USD/JPY has gained 150 points in the space of a few hours, so it would not be surprising to see some weakness now. However, as long as ¥113 holds we should expect a continued move higher.

The buyers now need to break the ¥113.80 level, the peak from 21/22 February, to open the way to the 50-day simple moving average at ¥114.44.

USD/JPY price chart

USD/JPY price chart

USD/JPY price chart

The information 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 Bank S.A. 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 and as such is considered to be a marketing communication.

Find articles by analysts