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

The dollar appears to be back in control, with EUR/USD and GBP/USD weakening. Meanwhile, EUR/GBP looks likely to develop its early bearish reversal signs.

GBP notes
Source: Bloomberg

EUR/USD turning lower within triangle consolidation

EUR/USD is moving into trendline support this morning, with the price trading within a triangle formation over recent days. The key here is whether we see the price break below $1.1847 to provide a bearish outlook.

Otherwise, an hourly close above $1.1980 would provide a bullish view. 

Current GBP/USD weakness could be short term

GBP/USD is selling off once more this morning, in what is increasingly looking like a retracement of the $1.2852-$1.2995 leg higher last week. The near-term hurdle comes in the form of the 50-period simple moving average (SMA) and 61.8% retracement at $1.2907.

However, should we break below that level, it will be the 76.4% retracement, at $1.2886, that will come in view as a potential area for the market to turn higher once more. We would need to break below $1.2852 to negate this bullish outlook.

EUR/GBP turning lower once more

EUR/GBP is moving lower once more this morning, following a 76.4% retracement yesterday. Coming off the back of a trendline and SMA breakdown, it looks like we have seen a top for the pair.

With that in mind, further downside is expected from here, with an hourly close above £0.9237 required to negate this bearish outlook. Watch out for the £0.9149 level as the next key support level in view. 

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