FX levels to watch: EUR/GBP, GBP/USD and AUD/USD

EUR/GBP and GBP/USD look like they could both regain ground following a recent decline. Meanwhile, AUD/USD strength seems likely to falter once more.

EUR/GBP looking set for rebound

EUR/GBP is regaining ground following a period of consolidation, with the ability to break through the £0.8826 area likely to be crucial for the direction from here.

With that in mind, an hourly close above that swing high would provide us with a bullish outlook for the day. Such a move could be a bottom, but could also be a retracement of the downturn from £0.8996. With that in mind, watch for a potential rally into Fibonacci resistance.

GBP/USD attempting to rebound from trendline support

GBP/USD is regaining ground this morning, following on from a pullback into trendline support last week.

The ability to break through the $1.3131 resistance would bring greater confidence for a push into the descending trendline resistance, which forms the top of a symmetrical triangle. As such, watch for either a break through $1.3131 or the ascending trendline to tell us where we go from here.

AUD/USD rebound looks unlikely to last

AUD/USD came close to breaking from the recent trend of lower highs and lower lows on Friday, with the rally back into the $0.7151 level greeted with a strong move into the $0.7088 swing low.

As such, this current rally is expected to fail once again, with a break above $0.7151 required to negate this bearish short-term outlook.

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