EUR/USD steady ahead of ECB, while GBP/USD rocked by Brexit headlines

EUR/USD has edged up ahead of today’s ECB meeting, and GBP/USD has been hit hard by the ongoing Brexit drama. Meanwhile, USD/JPY has formed a short-term base, pointing towards a potential move higher.


EUR/USD edges up ahead of ECB meeting

EUR/USD has been under pressure over the past few sessions, struggling to make headway and failing to hold the highs of each session.

However downside has been limited, with only a modest drop after the big move higher in November. Further declines would encounter trendline support around $1.20, and then below this the 50-day and 100-day simple moving averages (SMAs) at $1.1852 and $1.1827 come into view. A reversal above $1.215 would mark a new move to the upside.

GBP/USD sees plenty of movement but little overall change

Over the past few sessions the GBP/USD price has rallied to $1.35 and fallen towards $1.32, and been knocked back from both.

A wide range has been established, but the price has been stuck fast for three days now. Lower highs and higher lows have formed a triangle, and we wait for a break from this formation to provide the next indication of a near-term direction.

USD/JPY forms base above ¥103.50

While a move that holds above ¥104.60 continues to elude the USD/JPY pair, a base has been formed above ¥103.50 that hints at a fresh attempt to push higher.

However, bulls need to remember that gains above the 50-day SMA (¥104.71) have proven fleeting in recent months, with the overall downtrend still in place. A move through ¥105.00 brings ¥105.50 into view, the peak from early November.

IGA, may distribute information/research produced by its respective foreign affiliates 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.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. 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, and 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.

Please see important Research Disclaimer.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.