EURGBP, Daily
The pound looks to have found its feet following a three-week period of declines versus the G3 currencies and other units. There was only a limited flurry of selling after BoE deputy governor Shafik said yesterday (September 28) that “further monetary stimulus will be required at some point.” EURGBP yesterday posted two straight lower lows after capping out at a six-week peak on Monday, and Cable has found a toehold above 1.3000 amid an abating downside momentum indicators. Nothing has changed on the UK’s fundamental front, and most forex participants have been overlooking incoming data showing a rebound in activity from the post-Brexit vote wobble and instead focusing on the long and uncertain road ahead until the UK’s new relationship with the EU becomes clear. Both the Q3 BoE agents report and the British Chambers of Commerce have flagged falling business investment, which the latter expects to decline by 2.2% this year, and by 3.4% in 2017.
Should the rising trend be breached and broken around 0.8600 level then there could be further downside potential to the 0.8520 area which is the 14 Day ATR and confluence of the 20 and 50 DMA’s. Target 2 could be below the recent 38.2 Fibonacci level and into a previous congestion zone formed post the Brexit vote at 0.8470. The longer term Monthly and Weekly trends remain bullish and a further attempt of 0.8700 and the August High at 0.8725 cannot be ruled out. An interesting end to the week, month and quarter awaits.
Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.
Recommended Content
Editors’ Picks
EUR/USD clings to gains near 1.0700, awaits key US data
EUR/USD clings to gains near the 1.0700 level in early Europe on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
USD/JPY keeps pushing higher, eyes 156.00 ahead of US GDP data
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, recapturing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming intervention risks. The focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold closes below key $2,318 support, US GDP holds the key
Gold price is breathing a sigh of relief early Thursday after testing offers near $2,315 once again. Broad risk-aversion seems to be helping Gold find a floor, as traders refrain from placing any fresh directional bets on the bright metal ahead of the preliminary reading of the US first-quarter GDP due later on Thursday.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price.
Meta takes a guidance slide amidst the battle between yields and earnings
Meta's disappointing outlook cast doubt on whether the market's enthusiasm for artificial intelligence. Investors now brace for significant macroeconomic challenges ahead, particularly with the release of first-quarter GDP data.