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.

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.

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.

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.

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 IG 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.

Find articles by writer

Find out more about