The British pound is under the pressure of the Brexit outcome. The EU-UK talks continue without any development. Since the deadline of the year-end is getting closer, analysts expect that either this or the next week both sides will come to a conclusion. If the agreement is reached, the GBP will rise. Otherwise, the no-deal Brexit will drive the pound down.
Christine Lagarde has had a meeting today, but it didn’t have any impact on the euro so far. She emphasized that the services sector was more damaged than the manufacturing industry and reviewed ECB’s actions in response to the virus crisis. Besides, the German inflation report during the day may affect the euro.
Technical tips
EUR/GBP has been trading inside of the descending channel since September, so the trend is bearish. However, if we look at the last few candlesticks, we’ll notice a strong bullish potential. It has crossed the 200-day moving average (MA) and got closer to the upper trendline of 0.9000. We should expect it will bounce off this strong resistance and then dip. Elsewhere, the dead cross (the 50-day MA crosses the 100-day MA upside down) points to the soon fall of the pair. However, if EUR/GBP manages to break through this level, the way up to the next resistance of 0.9040 will be clear. In the opposite scenario, the move below the 200-day moving average of 0.8960 will drive the pair lower to the 0.8880-0.8900 zone.
This post is written and submitted by FBS Markets for informational purposes only. In no way shall it be interpreted or construed to create any warranties of any kind, including an offer to buy or sell any currencies or other instruments. The views and ideas shared in this post are deemed reliable and based on the most up-to-date and trustworthy sources. However, the company does not take any responsibility for accuracy and completeness of the information, and the views expressed in the post may be subject to change without prior notice.
Recommended Content
Editors’ Picks
EUR/USD extends gains above 1.0700, focus on key US data
EUR/USD meets fresh demand and rises toward 1.0750 in the European session 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.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.