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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

Recent dollar strength could come into question, with EUR/USD looking likely to turn higher from here. Meanwhile, EUR/GBP looks primed for another leg higher.

Euro and pound
Source: Bloomberg

EUR/USD weakness continues, yet Fibonacci support in view

EUR/USD has been selling off sharply over the past couple of days, coming off the back of a move higher in the early part of the week.

However, given the uptrend in play, there is a good chance that we will see another move higher in the near future. As such, watch out for the 76.4% retracement as a potential bullish reversal point, where a bullish outlook is in play unless we break back below the $1.1773 mark. 

GBP/USD turns lower from Fibonacci resistance

GBP/USD has been moving lower from the 76.4% retracement, following a strong start to the week. Given the shallow slant of this move, coupled with the break through $1.2918, there is an argument to be had that we could move higher from here.

On the other hand, the wider daily timeframe points towards a potential bearish wedge breakdown, which would be confirmed with a break below $1.2775. Alternately, the bullish view gains greater gravitas with a move above $1.2979.

EUR/GBP turning higher from trendline support

EUR/GBP is gaining ground this morning, following a sharp move lower yesterday. Crucially this has brought us back into the £0.9189 support level, which coincides with trendline support.

It looks likely that we will see the trend continue apace from here, with that £0.9189 level key to the trend continuing. As long as we remain above that level, further upside looks likely. 

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