Technical Update - GBPUSD, EURGBP, EURUSD and Dollar Index Technical Update - GBPUSD, EURGBP, EURUSD and Dollar Index Technical Update - GBPUSD, EURGBP, EURUSD and Dollar Index

Technical Update - GBPUSD, EURGBP, EURUSD and Dollar Index

Forex 4 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  GBPUSD breaking higher eyeing 1.2745
EURGBP could be reversing uptrend
EURUSD testing key resistance level
Dollar Index likely to test key support at 104


GBPUSD closed above strong resistance at around 1.2546 Friday and has continued the upwards move this morning
RSI has made new highs thus cancelling its divergence indicating likely new higher GBPUSD levels. in coming days and weeks.

A move to the 0.618 retracement at 1.2720 and the resistance at around a1.2745 seems highly likely

To reverse the bullish trend a close below 1.2445 is needed

Source all charts and data: Saxo Group

EURGBP has broken below its lower rising trendline and is now back below 200 DMA. Support at around 0.8640, a close below and an RSI closing below 40 the bearish scenario is confirmed with potential down to June-August lows around 0.85

Close A break above 0.8765 will extend the current bullish trend with resistance at around 0.8820-0.8875.

 

EURUSD is once again testing the 0.681 retracement at 1.0960 and last week’s peak at 1.0965. A close is likely to lead to a bullish move to the 0.786 retracement at around 1.11

There is currently minor divergence on the RSI but if RSI is closing above the horizontal blue line it will be cancelled paving the road for higher EURUSD levels
A close below 1.0850 the bullish trend is set to reverse with a bearish move to 1.08-1.0762 to be likely

The Dollar Index key support at around 103 seems likely to be tested once again. A close below there is no strong support until around 101.62
The 0.618 retracement at around 102.21 will offer some support, however.

A close above 104.12 will demolish the bearish picture and a close above 104.44 is likely to result in a trend reversal

Disclaimer

Saxo Capital Markets (Australia) Limited prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at https://www.home.saxo/en-au/legal/.

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments.Saxo Capital Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Capital Markets or its affiliates.

Please read our disclaimers:
- Full Disclaimer (https://www.home.saxo/en-au/legal/disclaimer/saxo-disclaimer)
- Analysis Disclaimer (https://www.home.saxo/en-au/legal/analysis-disclaimer/saxo-analysis-disclaimer)
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)

Saxo Capital Markets (Australia) Limited
Suite 1, Level 14, 9 Castlereagh St
Sydney NSW 2000
Australia

Contact Saxo

Select region

Australia
Australia

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-au/about-us/awards

Saxo Capital Markets (Australia) Limited ABN 32 110 128 286 AFSL 280372 (‘Saxo’ or ‘Saxo Capital Markets’) is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms, Financial Services Guide, Product Disclosure Statement and Target Market Determination to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Saxo Capital Markets does not provide ‘personal’ financial product advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Capital Markets does not take into account an individual’s needs, objectives or financial situation. The Target Market Determination should assist you in determining whether any of the products or services we offer are likely to be consistent with your objectives, financial situation and needs.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website is not intended for residents of the United States and Japan.

Please click here to view our full disclaimer.