Technical Update - EURUSD and GBPUSD rejected at key resistance levels. Trend reversal in the cards Technical Update - EURUSD and GBPUSD rejected at key resistance levels. Trend reversal in the cards Technical Update - EURUSD and GBPUSD rejected at key resistance levels. Trend reversal in the cards

Technical Update - EURUSD and GBPUSD rejected at key resistance levels. Trend reversal in the cards

Forex 2 minutes to read
Kim Cramer Larsson

Technical Analyst, Saxo Bank

EURUSD rejected at 1.06. Uptrend set to reverse with down side potential to 1.01
GBPUSD rejected at key level at 1.23. Rising wedge pattern indicates a reversal

EURUSD rejected at 0.382 retracement of the entire down trend since 2021. (See weekly chart) a few cents below 1.06.
There is divergence on daily time period indicating the short-term rebound/uptrend is weakening and could come to an end. AURUS is currently testing the short-term steep rising trendline and if EURUSD drops back below the daily 200 SMA there is strong indication the trend will reverse. Bear trend will be confirmed by a break below 1.0290. If that scenario plays out there is potential down to support at around 1.01.
If EURUSD breaks above 1.06 the uptrend is likely to extend to around 1.08

Source all data and charts: Saxo Group

GBPUSD has been forming a rising wedge like pattern hitting resistance at around 1.23. GBPUSD has not managed to close above.
Currently testing both the lower rising trendline and the 200 daily SMA GBPUSD could break lower. If GBPUSD breaks below the trendline followed by a break below 1.19 the uptrend has reversed and GBPUSD could drop to the 0.382 retracement at 1.1566. 100 and 55 SMA’s will also provide some support. A close above 1.23 however, could lead to further upside with potential to 1.2660-1.2745.

However, there is no divergence on RSI indicating GBPUSD could move higher but a close above 1.23 is needed.
The 1.23 is strong resistance. It is also the 0.50 retracement of the entire down trend since 2021. Weekly RSI is currently being rejected at the 60 threshold.


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 (
- Full disclaimer (

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

Saxo Markets
88 Market Street
CapitaSpring #31-01
Singapore 048948

Contact Saxo

Select region


Saxo Capital Markets Pte Ltd ('Saxo Markets') is a company authorised and regulated by the Monetary Authority of Singapore (MAS) [Co. Reg. No.: 200601141M ] and is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms & Risk Warning 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. Trading in leveraged products such as Margin FX products may result in your losses exceeding your initial deposits. Saxo Markets does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Markets does not take into account an individual’s needs, objectives or financial situation.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit

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 are not intended for residents of the United States, Malaysia and Japan. Please click here to view our full disclaimer.

This advertisement has not been reviewed by the Monetary Authority of Singapore.