FX levels to watch – GBP/USD, EUR/USD, USD/JPY

Risk-off moves this morning predominate, on a busier day for macro data. 

Pound and dollar
Source: Bloomberg

GBP/USD eyes $1.44

Further losses this morning ahead of the CPI reading suggest that we will see a move below $1.42 and towards the rising daily trendline.

If this holds then a bounce may materialise to take the pair back towards $1.44. Below the trendline support levels lie around $1.4050 and then $1.3840.

EUR/USD could see resistance at $1.1350

Three days of losses indicate that the pair is heading towards $1.11 as a first target, and then below this to the 200-day simple moving average at $1.1045.

With both the relative strength index and stochastics now bearish on the daily chart we may see further selling of rallies. Any move higher will face resistance around $1.1350 and then $1.14.

USD/JPY eyes ¥110

Having rallied off the ¥111 level, we now see whether the pair can gain fresh traction and head towards resistance around ¥114.

A failure to push higher will result in another test of recent lows with ¥110 the next target to watch on the downside. 

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