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EUR/USD steady ahead of ECB, while GBP/USD rocked by Brexit headlines

EUR/USD has edged up ahead of today’s ECB meeting, and GBP/USD has been hit hard by the ongoing Brexit drama. Meanwhile, USD/JPY has formed a short-term base, pointing towards a potential move higher.

Transcript

EUR/USD edges up ahead of ECB meeting

EUR/USD has been under pressure over the past few sessions, struggling to make headway and failing to hold the highs of each session.

However downside has been limited, with only a modest drop after the big move higher in November. Further declines would encounter trendline support around $1.20, and then below this the 50-day and 100-day simple moving averages (SMAs) at $1.1852 and $1.1827 come into view. A reversal above $1.215 would mark a new move to the upside.

GBP/USD sees plenty of movement but little overall change

Over the past few sessions the GBP/USD price has rallied to $1.35 and fallen towards $1.32, and been knocked back from both.

A wide range has been established, but the price has been stuck fast for three days now. Lower highs and higher lows have formed a triangle, and we wait for a break from this formation to provide the next indication of a near-term direction.

USD/JPY forms base above ¥103.50

While a move that holds above ¥104.60 continues to elude the USD/JPY pair, a base has been formed above ¥103.50 that hints at a fresh attempt to push higher.

However, bulls need to remember that gains above the 50-day SMA (¥104.71) have proven fleeting in recent months, with the overall downtrend still in place. A move through ¥105.00 brings ¥105.50 into view, the peak from early November.

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.

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