IFX Market Report: Monday 26th April 2021

GBPEUR took a devastating tumble as it closed below the 1.15 mark on Friday. The pair earlier in the week tested a high of above 1.17 but has since deprecated massively and could be on track for more losses. Sterling weakness has led to a similar situation with Cable; with the pair pushing past 1.40 during the week but unable to sustain itself at that position. Since reaching this mark, GBPUSD has pulled back significantly as it struggles to maintain its status in the 1.38 region.

GBPUSD opened on Friday at 1.3862 and closed at 1.3838. Some economists recognize that the market “is trying to form some type of bullish flag, but… still struggling in general, and it looks like we have a lot of noise between now and some type of break out to get through”. They went on to add that “to the upside, the 1.42 handle is a large, round, psychologically significant barrier that has shown itself to be difficult to get above, but if and when we can break above there, then the market goes looking towards 1.45 handle”. Equally, if Cable makes moves to the downside, the same experts argue it’s likely the pair will “break down below the 1.35 handle”.

GBPEUR also fell on Friday as it closed the week at 1.1484, after opening the London session at 1.1525. Despite these losses, the pair “has support at the 1.1280 level, which was key in 2020, but the price would have to get through the lows below 1.1500 to get nearer that level.”

EURUSD traded in a relatively tight range once again as pair stayed stagnant in the 1.20’s. The pair opened the day at 1.2028 and closed at 1.2050.

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