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CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

​​​EUR/GBP slides while GBP/USD and USD/CNH gradually advance

​​Outlook on EUR/GBP, GBP/USD and USD/CNH as US is shut for Martin Luther King Jr. holiday​.

Forex market Source: Bloomberg

​​​EUR/GBP weighs on the £0.86 region

EUR/GBP's drop from its £0.8714 December high has taken it to last week’s £0.8587 low which remains in sight after President Lagarde reassured markets on Friday that interest rates will fall once inflation is under control.

​A drop through last week’s £0.8587 low would eye the 15 December low at £0.8572 and perhaps also the December low at £0.855.

​Minor resistance remains to be seen at last week’s £0.8621 high and the previous Friday’s £0.8634 high.

EUR/GBP chart Source: IT-Finance.com
EUR/GBP chart Source: IT-Finance.com

​GBP/USD nears mid-December peak

GBP/USD's advance from its early January low at $1.2611 still has the mid-December high at $1.2794 and the December five-month peak at $1.2828 in its sights.

​Upside pressure should play a dominant role while Wednesday’s low at $1.2687 holds.

​Minor support at Wednesday’s $1.2745 high is currently being tested. Below it lies good support along the November-to-January uptrend line, 21 December and current January lows at $1.2679 to $1.2611.

GBP/USD chart Source: IT-Finance.com
GBP/USD chart Source: IT-Finance.com

​USD/CNH continues to gradually advance

USD/CNH's gradual advance from its eight-month low at CN¥7.0875 along the 200-day simple moving average (SMA) at CN¥7.1797 has so far taken it to the 55-day SMA at CN¥7.1883 and Friday’s high at CN¥7.193. This despite the Chinese central bank sticking to its medium-lending rate amid rate cut expectations.

​Support below the 200-day SMA at CN¥7.1797 and the January tentative uptrend line at CN¥7.1735 is seen at Thursday’s CN¥7.1617 low.

​A rise above Friday’s CN¥7.193 high could lead to the December peak at CN¥7.2 being back in focus.

USD/CNH chart Source: IT-Finance.com
USD/CNH chart Source: IT-Finance.com

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