Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose. CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

EUR/USD, GBP/USD and AUD/USD gain ground after recent declines

EUR/USD, GBP/USD and AUD/USD regain ground, yet it is the pound which proves the outperformer in this resurgence.

​EUR/USD regaining ground after recent declines

EUR/USD has managed to break out of a short-term downtrend, with the rise through $1.1027 pointing towards a potential period of strength to close out the week. There is a good chance that we are seeing a retracement of the wider decline from $1.1118, with further upside looking likely for a move towards a deeper retracement.

A break below $1.0992 would point towards this rally being over. However, it does look likely we will see another leg higher for the short term, with the 61.8%-76.4% Fibonacci retracement zone looking like an interesting area that could drive a bearish reversal for the pair.

GBP/USD surging higher after another deep retracement

GBP/USD once again managed to rebound from a very deep retracement yesterday, with the decline into trendline support ultimately resolving with a move higher. Yesterday’s Bank of England (BoE) rate decision provided the pair with a new bullish emphasis, and that upside is continuing this morning despite a period of overnight consolidation.

Given the uptrend see over the past two weeks, it makes sense to expect a continuation via a break through the $1.3175 resistance level. However, a break below $1.3075 would start to weaken that story.

AUD/USD upside likely to fail once more

AUD/USD gains have been somewhat limited, with the price rising back towards a short-term trendline resistance. Even the short-term downtrend remains intact for this pair, with further downside looking likely as a result.

A break through $0.6777 would be required to negate this short-term downtrend, and thus it makes sense to presume this pair will maintain this bearish trend unless we are shown otherwise.

This information has been prepared by IG, a trading name of IG US LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. Any research provided should be considered as promotional and was prepared in accordance with CFTC 1.71 and designed to promote the independence of investment research. See our Summary Conflicts Policy, available on our website.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.8 pips on EUR/USD
  • Analyze market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on the most popular forex markets


Prices above are subject to our website terms and agreements. Prices are indicative only

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 forex provider.

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