Skip to content

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 and GBP/USD

EUR/USD and GBP/USD are selling off from key resistance levels, with both pairs hitting a crucial level of support. A break below there would signal a strong potential of further downside for both pairs.

Video poster image

EUR/USD drops into key support level

EUR/USD has been selling off sharply from the $1.1745 support level this morning, with the price approaching the crucial $1.1620 level.

This represents an important breakout point, below which we would be looking likely to see further downside come into play. However, until then, there is a good chance we could see a rebound to continue the triangle that has been in play over the past month.

GBP/USD breaking below crucial support level

GBP/USD has dropped below the $1.3083 support level, as the pair looks likely to pave the way for further downside. The previous respect at the 76.4% retracement last week seems to have drawn a line under (or above) recent gains, with a break below this $1.3071-$1.3083 area key to seeing that come through.

As such, look out for whether we can see a break below the support zone. An hourly close below there would point towards further downside to come.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by writer