CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money. CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

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.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research 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.

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