Sterling continues to decline amid political uncertainty in UK

GBP/USD is expected to move lower today, along with EUR/USD and AUD/USD, in a continuation of the wider trends of recent weeks.

EUR/USD continue to decline after rally into deep retracement

EUR/USD has been declining after a deep retracement into trendline and the 200-simple moving average (SMA) resistance. The wider downtrend remains in play and points towards a likely move back into the lows around $1.1111.

With the pair oversold, there is a chance of a rebound, yet further downside does look likely as the pair continues the bearish pattern. A break through $1.1264 would be required to negate the wider downtrend.

GBP/USD continues to decline after recent rebound

GBP/USD has experienced a consistent phase of losses over the course of the month, with that selling pressure continuing this week. Bearing last week’s rebound in mind, this current move looks like a return to that bearish theme.

Given that such a move below $1.2605 would confirm the break below the 76.4% retracement at $1.2659, it would also provide a clue that the pair could ultimately head back towards the long-term low of $1.2435. A rise through $1.2748 would be required to negate the bearish trend that is currently in play.

AUD/USD turning lower following recent rebound

AUD/USD managed to muster a rebound into the crucial $0.6934 swing-high last week, with that level of resistance continuing to play out during recent trading days.

With the price turning lower this morning, there is a good chance the sellers will gain prominence as the day continues. Watch for an hourly close below the $0.6912 level to signal a likely bearish phase coming into play. Only with a break through the $0.6934 peak would we see a more bullish picture form.

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.