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

Risk currencies have enjoyed an impressive bounce, although whether it lasts remains to be seen. 

Pound coins and dollar notes
Source: Bloomberg


We are around 2% higher from yesterday’s low just above $1.40. While the usual caveats about the referendum apply, it may be that cable has recovered and is now poised to move back towards the 50-day simple moving average (SMA) at $1.4433. Beyond this the next target is $1.47 and then highs from May.

The $1.40 mark remains the line in the sand on the downside, and a break below here still targets the February low at $1.3840.


A bounce off the rising post-December 2015 trendline perhaps indicates the short-term drop of the past few days is at an end.

A push above $1.1 would likely act as catalyst for a move to the upside, perhaps to $1.14 and then beyond to $1.16 for EUR/USD.


While the price has recovered to stand back above ¥104, the downtrend is still in place. However, a close higher today may indicate that a bottom is in place (even if the longer-term downtrend from the highs of 2016 is still firmly intact).

A first area to watch on the upside would be ¥106, and then to the 50-day SMA at ¥108.50.

A move down today below ¥104 and then below yesterday’s low at ¥103.50 would simply indicate that more downside is on its way, perhaps down to ¥103.10 in the first instance. 

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.