EUR/GBP moves away from crucial long-term support

Tomasz Wisniewski Axiory Global Ltd.

The last two days are definitely very important for the EURGBP. News crucial for this pair is flowing in constantly, giving the EURGBP fuel for some nice swings. Yesterday, the Euro was lifted by rumors that the European Central Bank (ECB) will finally act and increase interest rates. Today, we received PMs from the Eurozone and from the UK. The important one was the UK PM, which was worse than expectations and brought us a bearish sentiment. Quite surprising if you ask me but hey, sometimes markets don’t even need a reason to move.

Today’s rise of the EURGBP is absolutely crucial from a technical point of view. The weekly chart shows us a long-term situation. The important thing here is the decisive rejection of the 0.83 support (green). This support is absolutely crucial for the long-term situation and as log as we are above, the main sentiment is positive.

Today’s surge, managed to break two crucial dynamic resistances (black). At some point, we can also see an inverse head and shoulders pattern (orange) but it’s not the handsome one which you can see on textbooks. Nevertheless, the bounce from 0.83 is a fact and the log-term sentiment remains positive and stays this way as long as the price stays above the black lines. It’s possible for the price to return below the black lines, but for now it’s less likely to happen.

Author

Tomasz Wisniewski

Axiory Global Ltd.

Tomasz was born in Warsaw, Poland on 25th October, 1985.

EUR/USD trims gains, hovers around 1.1900 post-US data

EUR/USD trades slightly on the back foot around the 1.1900 region in a context dominated by the resurgence of some buying interest around the US Dollar on turnaround Tuesday. Looking at the US docket, Retail Sales disappointed expectations in December, while the ADP 4-Week Average came in at 6.5K.

GBP/USD comes under pressure near 1.3680

The better tone in the Greenback hurts the risk-linked complex on Tuesday, prompting GBP/USD to set aside two consecutive days of gains and trade slightly on the defensive below the 1.3700 mark. Investors, in the meantime, keep their attention on key UK data due later in the week.

Gold loses some traction, still above $5,000

Gold faces some selling pressure on Tuesday, surrendering part of its recent two-day advance although managing to keep the trade above the $5,000 mark per troy ounce. The daily pullback in the precious metal comes in response to the modest rebound in the US Dollar, while declining US Treasury yields across the curve seem to limit the downside.

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.

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.