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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% 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.

​​EUR/USD and GBP/USD benefit from weaker US dollar but EUR/GBP struggles

​​Outlook on EUR/USD, EUR/GBP and GBP/USD ahead of Thursday’s Jackson Hole symposium.

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EUR/USD tires to regain some of its recent losses

​​EUR/USD’s decline from its $1.1275 July peak has taken it to last week’s low at $1.0862 before the cross recovered as U.S. 10-year yields rallied to levels last seen in November 2007.

​The downtrend channel resistance line and 55-day simple moving average (SMA) at $1.0964 are now in focus, as is the minor psychological $1.10 region around which EUR/USD oscillated for much of August.

​Slips should find support around Friday’s high at $1.0894. ​The $1.0862 to $1.0834 July and current August lows make up solid support with the 200-day SMA at $1.0799.

EUR/USD chart Source: IT-Finance.com
EUR/USD chart Source: IT-Finance.com

​EUR/GBP remains above support

​Following last week’s sell-off, EUR/GBP continues to stabilize above its £0.8522 to £0.8504 June and July lows, as UK public sector borrowing in July was the 5th highest on record. Excluding banks it came in at £4.3 billion in July, up from £0.9 billion a year ago but below market expectations of £5.0 billion.

​Below last week’s low at £0.8524 lies the £0.8522 to £0.8504 support area.

​Monday’s high at £0.8563 needs to be bettered for a rise back towards the 55-day SMA at £0.8583 to ensue.

EUR/GBP chart Source: IT-Finance.com
EUR/GBP chart Source: IT-Finance.com

​GBP/USD gains further ground

​On Tuesday morning GBP/USD managed to heave itself above its 55-day SMA at $1.2773 for the first time in nearly two weeks with the 10 August peak at $1.2819 representing its next upside target as the U.S. dollar retracts ahead of Thursday’s Jackson Hole symposium.

​Only a rise and daily chart close above the 10 August high at $1.2819 could technically indicate that a bullish reversal is being formed.

​While Friday’s low at $1.2690 underpins, the odds favour further upside. ​Good support sits between the early-and mid-August lows at $1.2621 to $1.2617.

GBP/USD chart Source: IT-Finance.com
GBP/USD chart Source: IT-Finance.com

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