The recent rally in both euro and British pound has proved to be short-lived while the euro has tested the area around 1.07 before retreating whereas the pound did not even manage to climb above 1.23 before falling back below 1.21. Given geopolitical tensions and thus an increased demand for safe haven currencies, the U.S. dollar remains strong so far and many traders use dips as USD buying opportunities.
In the GBP/USD the psychological 1.20-level comes back into focus now and in case this support level is broken, we may see a free-fall towards 1.18.
Today, all eyes turn to European Central Bank policy statement due at 12:15 UTC and the first look at the U.S. Q3 GDP, scheduled for release at 12:30 UTC.
The ECB will keep rates on hold, so no big surprises are expected here but if U.S. GDP reveals a further economic expansion, the euro is vulnerable to further losses.
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Our trading ideas for today 26/10/23:
Long @ 1.0570
Short @ 1.0525
Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.
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