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

The euro shows no sign of weakening, while cable has come under pressure over the past 24 hours. 

Euro and pouund
Source: Bloomberg

EUR/USD to go higher?

Weakness below $1.1172 for EUR/USD would be the catalyst for selling, so as long as this holds we will look for another push to $1.13 and higher.

In the case of a drop through $1.1172 further support comes into play around $1.1080. 

GBP/USD pressured by poor GDP numbers

Poor GDP numbers and a fresh YouGov poll have piled the pressure on GBP/USD, but it continues to hold the $1.2850 level that has been such a vital support this month.

A bounce from here still leaves the pair in consolidation mode, so we look for the possibility of a return to $1.2965 and higher. Only a close below $1.28 really suggests a definitive bearish development.

USD/JPY getting bearish

The bears have regained control, with USD/JPY dropping below Wednesday’s low of ¥111.46. The next target is ¥110.80, and below this the 200-day simple moving average (SMA) at ¥110.05.

If real bearish momentum develops, we could see a push back to the April lows at ¥108. 

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