FX levels to watch – EUR/USD, GBP/USD, EUR/GBP

Recent dollar strength could come into question, with EUR/USD looking likely to turn higher from here. Meanwhile, EUR/GBP looks primed for another leg higher.

Euro and pound
Source: Bloomberg

EUR/USD weakness continues, yet Fibonacci support in view

EUR/USD has been selling off sharply over the past couple of days, coming off the back of a move higher in the early part of the week.

However, given the uptrend in play, there is a good chance that we will see another move higher in the near future. As such, watch out for the 76.4% retracement as a potential bullish reversal point, where a bullish outlook is in play unless we break back below the $1.1773 mark. 

GBP/USD turns lower from Fibonacci resistance

GBP/USD has been moving lower from the 76.4% retracement, following a strong start to the week. Given the shallow slant of this move, coupled with the break through $1.2918, there is an argument to be had that we could move higher from here.

On the other hand, the wider daily timeframe points towards a potential bearish wedge breakdown, which would be confirmed with a break below $1.2775. Alternately, the bullish view gains greater gravitas with a move above $1.2979.

EUR/GBP turning higher from trendline support

EUR/GBP is gaining ground this morning, following a sharp move lower yesterday. Crucially this has brought us back into the £0.9189 support level, which coincides with trendline support.

It looks likely that we will see the trend continue apace from here, with that £0.9189 level key to the trend continuing. As long as we remain above that level, further upside looks likely. 

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