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 and GBP/USD likely to fall back

EUR/USD and GBP/USD look primed for another leg lower over the short term.

EUR/USD starts to weaken after recent rally

EUR/USD has seen sharp gains throughout the past week, with the pair hitting a four-month high on Tuesday. We have seen a tentative signal that this rally could reverse in the short-term, however, bringing about another downward retracement.

The recent creation of lower highs and lows seen since that $1.1239 peak signals a potential bearish phase coming into play. A drop below $1.1181 would provide a more confident signal of such a move. For now, watch whether we see a break through the $1.1224 swing-high or not. Should that break occur, we would look likely to come back into a more bullish outlook. Until then, another leg lower looks likely today.

GBP/USD at risk of another leg lower

GBP/USD has similarly been gaining ground over the past week, yet the decline seen overnight signals a potential downward retracement coming into play.

With the current price action providing a very minimal rebound, this looks likely to resolve in another leg lower. As such, a deeper retracement looks likely from here, with a bearish picture in play for today unless we see a rise through the $1.3268 level.


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