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

The Saxo Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research 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 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. To the extent that any content is construed as investment research, you must note and accept that the 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 under relevant laws.

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

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo 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 or its affiliates.

Saxo Capital Markets HK Limited
19th Floor
Shanghai Commercial Bank Tower
12 Queen’s Road Central
Hong Kong

Contact Saxo

Select region

Hong Kong S.A.R
Hong Kong S.A.R

Saxo Capital Markets HK Limited (“Saxo”) is a company authorised and regulated by the Securities and Futures Commission of Hong Kong. Saxo holds a Type 1 Regulated Activity (Dealing in Securities); Type 2 Regulated Activity (Dealing in Futures Contract); Type 3 Regulated Activity (Leveraged Foreign Exchange Trading); Type 4 Regulated Activity (Advising on Securities) and Type 9 Regulated Activity (Asset Management) licenses (CE No. AVD061). Registered address: 19th Floor, Shanghai Commercial Bank Tower, 12 Queen’s Road Central, Hong Kong.

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. Trading in leveraged products may result in your losses exceeding your initial deposits. Saxo does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo does not take into account an individual’s needs, objectives or financial situation. Please click here to view the relevant risk disclosure statements.

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

The information or the products and services referred to on this site 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 are not directed at, or intended for distribution to or use by, any person or entity residing in the United States and Japan. Please click here to view our full disclaimer.

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