EUR/GBP: Expect more selling pressure

Mthokozisi Mpofu Knars Capital

EURGBP, this pair corrected aggressively lower down to the 50 Fibonacci level. This move lower was impulsive and in five waves signalling to us that this was the start of a zigzag. A zigzag pattern is a 5-3-5 pattern as a correction of the larger degree trend.

We touched 0.90806 and moved higher from that level in a slow and choppy manner. The dotted lined marked 0.92094 in the chart below is the 61.8 Fibonacci level of the initial move lower. Which is a good area to look for short positions in the direction of the zigzag correction with targets around 0.90065.

0.90806 would meet the minimum requirements for a zigzag land the pair may continue higher from that 50 Fibonacci level instead of going lower. Keep an eye for a bounce in the direction of the larger degree trend moving forward.

Key news events out this week:
Wednesday 23rd of September French Flash Manufacturing and services PMI, German Flash Manufacturing and services PMI, GBP Flash Manufacturing, and services PMI.

Res: 0.92094; 0.92914; 0.93293
Sup: 0.90806; 0.90065; 0.89626

Author

Mthokozisi Mpofu

Knars Capital

Mthokozisi Mpofu is the Managing Director of Knars Capital Pvt Ltd, an investment advisory firm helping African SMEs secure growth capital and become investor-ready.

EUR/USD looks offered below 1.1900

EUR/USD keeps its bearish tone unchanged ahead of the opening bell in Asia, returning to the sub-1.1900 region following a firmer tone in the US Dollar. Indeed, the pair reverses two consecutive daily gains amid steady caution ahead of Wednesday’s key US Nonfarm Payrolls release.

GBP/USD slips back to daily lows near 1.3640

GBP/USD drops to daily lows near 1.3640 as sellers push harder and the Greenback extends its rebound in the latter part of Tuesday’s session. Looking ahead, the combination of key US releases, including NFP and CPI, alongside important UK data, should keep the pound firmly in focus over the coming days.

Gold the battle of wills continues with bulls not ready to give up

Gold remains on the defensive and approaches the key $5,000 region per troy ounce on Tuesday, giving back part of its recent two day. The precious metal’s pullback unfolds against a firmer tone in the US Dollar, declining US Treasury yields and steady caution ahead of upcoming key US data releases.

Bitcoin's downtrend caused by ETF redemptions and AI rotation: Wintermute

Bitcoin's (BTC) fall from grace since the October 10 leverage flush has been spearheaded by sustained ETF outflows and a rotation into the AI narrative, according to Wintermute.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.