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 side-lined, EUR/GBP down and GBP/USD up on sterling strength

A stronger British pound due to anticipated further BoE interest rate hikes pushes EUR/GBP lower and GBP/USD higher while EUR/USD remains mixed in low volatility trading.

EUR/USD side-lined ahead of next week’s Russia-US meeting

Volatility has been decreasing in the EUR/USD cross over the past couple of days as traders are getting used to the Russia-Ukraine stalemate.

Yesterday EUR/USD bounced off the 55-day simple moving average (SMA) and one-month support line at $1.1338 to $1.1323 and today it is so far trading within a tiny 30 tick range. Minor resistance continues to be seen between late November, December, and this week’s highs at $1.1382 to $1.1396. It will need to be exceeded for the January and current February highs at $1.1482 to $1.1495 to be back in the picture.

Only slide-through support at $1.1323 could lead to this week’s low at $1.1281 and the early January low at $1.1272 being retested.

The gradual EUR/GBP slide continues

EUR/GBP continues to give back its early February swift gains on the back of recent sterling strength, benefitting from a Covid-19 post-Omicron growth rebound and expectations for further Bank of England (BoE) interest rate hikes.

Were Thursday’s low at £0.8334 to give way, the mid-January trough at £0.8324 would be targeted. Major support remains to be seen between the January and early February lows at £0.8305 to £0.8286.

Minor resistance above the £0.8381 November low and this week’s high at £0.8402 can be found along the 55-day SMA at £0.8409.

GBP/USD trades near four-week highs

GBP/USD’s strong bounce off the $1.3513 to $1.349 mid-November high, 6 January and 7 February lows, as the pound sterling strengthened amid expectations for further BoE interest rate hikes, has taken it to a one-month high close to last week’s high at $1.3644.

Next up are the 200-day SMA at $1.369 and the January peak at $1.3749.

Only a currently unexpected fall through this week’s $1.3487 low, would push the $1.3455 to $1.3431 support zone back to the fore. It is comprised of 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.


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