FX levels to watch – EUR/USD, GBP/USD

The pound has suffered in the wake of the election, while dollar strength is driving EUR/USD lower. 

Dollar notes
Soource: Bloomberg

GBP/USD $1.27 seems to be holding for now

Given the sharp rally in GBP/USD since the March lows, it is not surprising to have a significant retracement. It is only the fact that this has happened in two days rather than around a week that has amplified the impression of a big move.

The $1.27 area appears to be holding well, and if it recovers from here, a move back above $1.28 could still be possible. 

EUR/USD pushes lower

In case of further EUR/USD weakness, $1.11 is still the next area to watch. If this holds then a consolidation period between here and $1.13 could be in the offing.

Otherwise, a loss of $1.10 would suggest a move towards $1.10 and lower. A breakout from $1.13 would head towards $1.1366. 

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