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EUR/USD and GBP/USD push higher as risk-on mood hurts the dollar

EUR/USD and GBP/USD on the rise, yet the pound continues to lag amid fears of a harsher lockdown and near-term economic struggles.

EUR/USD pushes higher as risk sentiment improves

EUR/USD has been gaining ground over the past week, with improved risk sentiment coming at the detriment of the US dollar. The hourly chart highlights that recent recovery, with the price largely tracking an ascending trendline to create higher lows.

We have seen the price break into a fresh higher high this morning, with further upside looking likely from here. That being said, we have seen relatively deep retracements within this trend. As such, it makes sense to be aware that pullbacks are likely as we push higher, with a break below the latest swing-low of $1.2191 required to negate the bullish trend that is currently in play.

GBP/USD fails to take advantage of Brexit deal

GBP/USD gains seen in the wake of the Brexit deal have faded somewhat, with the pair underperforming thanks to a heightened risk of further lockdowns and the potential for some economic difficulty when the UK leaves the EU.

The pair has been regaining ground this morning, yet we need to see the $1.3535 swing-high broken to bring an end to the retracement phase that has taken us into the 61.8% Fibonacci zone.

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