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

Recent dollar strength could come into question, with EUR/USD looking likely to turn higher from here. Meanwhile, EUR/GBP looks primed for another leg higher.

Euro and pound
Source: Bloomberg

EUR/USD weakness continues, yet Fibonacci support in view

EUR/USD has been selling off sharply over the past couple of days, coming off the back of a move higher in the early part of the week.

However, given the uptrend in play, there is a good chance that we will see another move higher in the near future. As such, watch out for the 76.4% retracement as a potential bullish reversal point, where a bullish outlook is in play unless we break back below the $1.1773 mark. 

GBP/USD turns lower from Fibonacci resistance

GBP/USD has been moving lower from the 76.4% retracement, following a strong start to the week. Given the shallow slant of this move, coupled with the break through $1.2918, there is an argument to be had that we could move higher from here.

On the other hand, the wider daily timeframe points towards a potential bearish wedge breakdown, which would be confirmed with a break below $1.2775. Alternately, the bullish view gains greater gravitas with a move above $1.2979.

EUR/GBP turning higher from trendline support

EUR/GBP is gaining ground this morning, following a sharp move lower yesterday. Crucially this has brought us back into the £0.9189 support level, which coincides with trendline support.

It looks likely that we will see the trend continue apace from here, with that £0.9189 level key to the trend continuing. As long as we remain above that level, further upside looks likely. 

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