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

Sterling in the limelight, as May’s expected exit drives GBP/USD lower yet again. Meanwhile, USD/JPY looks attractive after a decline into trendline support.

Will EUR/USD rebound signal beginning of bullish phase?

EUR/USD managed to rebound through the $1.1175 swing high yesterday, bringing an end to the short-term downtrend in place since the market topped out at $1.1263 just over a week ago.

That points towards a potential bullish phase coming into play rather than the break below $1.1135 and $1.1112. The key to that decline into the April low of $1.1112 is whether we can break below that May swing low of $1.1135. Given the rebound yesterday, it makes sense to await a break below $1.1142 to signal a continuation of the recent declines. Alternately, a more bullish outlook comes with a rise through $1.1188.

GBP/USD rebound proves short-lived after May lays out new proposal

GBP/USD has resumed its downward trajectory today, with UK Prime Minister Theresa May’s new ‘bold’ Brexit plan being brushed aside just like her past four proposals.

This looks like the last nail the coffin for the prime minister, with fears of a harder form of Brexit growing. The shallow rebound seen this morning provide us with an ideal area to put out stops, with a bearish outlook in place unless we break through the $1.2719 swing high.

USD/JPY declines into trendline support

USD/JPY has drifted lower overnight, with the pair taking a breather from the recent uptrend.

However, with the price falling back into trendline support, the bullish theme looks set to continue before long. Certainly, if we saw a break below the ¥109.81 swing low, things would look different. Until then it looks likely we will see the pair turn higher in the near future. For further confirmation, look for a rise in the stochastic back up through the 20 mark.

IGA, may distribute information/research produced by its respective foreign affiliates 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.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. 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, and 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.

Please see important Research Disclaimer.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.