CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

EUR/USD, EUR/GBP and GBP/USD look top heavy

EUR/USD, EUR/GBP and GBP/USD continue to display a short-term bearish bias.

​EUR/USD capped by January high, revisits breached resistance line, now support

EUR/USD continues to be capped by the January peak at $1.1482 and did a ‘return to point of breakout’ by dipping back to the breached 2021-to-2022 downtrend line at $1.1402.

Slightly further down the late November and December highs at $1.1386 to $1.1382 may act as support as well as the mid-point of Thursday’s long ‘body’ of its candle at $1.1368. The ‘body’ shows the distance between the open and the close of a candle.

The January and current February highs at $1.1382 to $1.1383 will need to be exceeded for EUR/USD to continue its ascent and for the next higher October and 5 November lows at $1.1513 to $1.1529 to be reached.

EUR/GBP is to come further off its £0.8478 current February high

EUR/GBP looks short-term toppish and is likely to glide back towards the 55-day simple moving average (SMA), January high and 23 December low at £0.8424 to £0.8416. This support zone may well underpin.

Resistance above Monday’s high at £0.8478 can be found along the 2020-to-2022 downtrend line at £0.8492 and the 200-day SMA at £0.8514.

GBP/USD weighs on the $1.3513 to $1.349 support zone

GBP/USD's advance from its late January low at $1.3365 has so far taken it to last week’s high at $1.3628 before tumbling back to the mid-November high, 38.2% Fibonacci retracement and 6 January low at $1.3513 to $1.349.

A drop through $1.349 may lead to the next lower $1.3441 to $1.3431 support area to be touched. It encompasses the early as well as the 25 and 26 January lows and the 55-day SMA. Further down lies the January trough at $1.3359.

Resistance above the 50% retracement of the January slide at $1.3552 and the 18 January low at $1.3573 can be found along the 61.8% Fibonacci retracement and one-month resistance line at $1.3599 to $1.3602.


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. 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. See full non-independent research disclaimer.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

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. Prices are indicative only. All shares prices are delayed by at least 15 mins.

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.