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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

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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