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

An action-packed week for GBP/USD and other sterling crosses is likely, while events in Turkey do not seem to have unduly affected risk appetite. 

Euro and US dollar notes
Source: Bloomberg


Ahead of a busy week for UK data, cable remains relatively positive. It dropped back sharply from Friday’s peak near $1.35, so this is now the area to watch on the upside.

A break above here would head towards $1.3685 and the top end of the gap down at the end of June.

Weakness may see $1.3150 and then $1.31, where downside momentum stalled. A daily close below would head towards $1.2850. 

Friday’s sharp reversal has rather spoiled hopes that we might get a continuation of gains for EUR/USD at the beginning of this week.

Rather, a weak close today, below $1.1060 would suggest a return to $1.10, and from there down to the $1.09 area.

It would take a strong push above $1.1160 to put the bulls back in control.

The impressive bounce here seems to have run its course, as the 50-day simple moving average (¥106.20) combines with the ¥106 level itself, which proved to be resistance at the beginning of May and in mid-June.

Even if further upward progress is seen today, the downtrend line off the February highs comes into play at ¥107, which may limit further gains. 

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. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.