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.

EUR/USD and GBP/USD under pressure while EUR/GBP consolidates

EUR/USD and GBP/USD ease off preceding FOMC while EUR/GBP pauses near resistance.

​EUR/USD slips back towards channel support line ahead of FOMC

EUR/USD is revisiting its two-month channel support line at $1.1307 which held last week, but this week may well give way ahead of key policy decisions from the US Federal Reserve (Fed) on Wednesday.

A fall through the channel support line at $1.1307 would push the late December and early January lows at $1.1274 to $1.1272 to the fore. Further down lie the mid-December low at $1.1222 as well as the November trough at $1.1186, both of which would become downside targets on a slip through the $1.1272 early January low.

Immediate downside pressure will remain in play while the cross stays below the 16 January high at $1.1369 and, more importantly, the late November and December highs at $1.1383 to $1.1387.

EUR/GBP gives back some of last week’s gains

Last week EUR/GBP made a new year-to-date low at £0.8305, right between the £0.8313 to £0.8277 December 2016, April 2017, December 2019 and February 2020 lows, before shooting up on weaker than expected UK retail sales.

While the November low and last week’s high at £0.8379 to £0.8381 aren’t bettered, however, overall downside pressure should retain the upper hand with the December 2019 and February 2020 lows at £0.8282 to £0.8277 representing key long-term support which will probably again hold, if revisited. Only if fallen through, would the April 2016 high at £0.8118 be in focus.

A break above resistance at £0.8381 would lead to the £0.8403 October low being eyed. Further up, this year’s high-to-date can be seen at £0.8419.

GBP/USD slides towards the 38.2% Fibonacci retracement at $1.3526

GBP/USD's descent since its $1.3749 mid-January peak has practically taken it back to the 38.2% Fibonacci retracement of the December-to-January advance at $1.3526, below which the mid-November high at $1.3514 is to offer short-term support.

Slightly further down the 6 January low can be found at $1.349 and this year’s low-to-date at $1.3431.

Only a currently unexpected bullish reversal and rise above the 20 January last reaction high and the 200-day simple moving average (SMA) at $1.3662 to $1.3668 would invalidate the current short-term bearish pressure.

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.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market.

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets 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 spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.