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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.

FX levels to watch: EUR/GBP, GBP/USD and AUD/USD

EUR/GBP and GBP/USD look like they could both regain ground following a recent decline. Meanwhile, AUD/USD strength seems likely to falter once more.

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EUR/GBP looking set for rebound

EUR/GBP is regaining ground following a period of consolidation, with the ability to break through the £0.8826 area likely to be crucial for the direction from here.

With that in mind, an hourly close above that swing high would provide us with a bullish outlook for the day. Such a move could be a bottom, but could also be a retracement of the downturn from £0.8996. With that in mind, watch for a potential rally into Fibonacci resistance.

EUR/GBP chart

GBP/USD attempting to rebound from trendline support

GBP/USD is regaining ground this morning, following on from a pullback into trendline support last week.

The ability to break through the $1.3131 resistance would bring greater confidence for a push into the descending trendline resistance, which forms the top of a symmetrical triangle. As such, watch for either a break through $1.3131 or the ascending trendline to tell us where we go from here.

GBP/USD chart

AUD/USD rebound looks unlikely to last

AUD/USD came close to breaking from the recent trend of lower highs and lower lows on Friday, with the rally back into the $0.7151 level greeted with a strong move into the $0.7088 swing low.

As such, this current rally is expected to fail once again, with a break above $0.7151 required to negate this bearish short-term outlook.

AUD/USD chart

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