EURGBP Basing Pattern
The sell off in EURGBP since the April highs has been slow and laboured with price grinding lower within a bearish channel. However, for now, price is still sitting above the .8492 level support and with plenty of bullish divergence in both MACD and RSI indicators, there is room for a reversal higher here. The retail community is currently more than 80% long, suggesting the current price action might continue for now. However, as this ration starts to reverse, look for a break above the .8617 level to target .8722 initially.
EUR and GBP have been locked in a stalemate over recent months as Europe gathers momentum with vaccination programs and reopening plans. Meanwhile, in the UK, rising delta numbers are raising concerns over the PM’s reopening plans and the risk of a return to lockdown should the situation escalate.
Key Data to Watch
Little in the way of key data for either the EZ or the UK this week. With this in mind, the pair is likely to remain largely tied to any headlines around COVID as both economies move tentatively through the current reopening schedules. In the UK, the PM is set to announce the further easing of lockdown restrictions as of July 19th. However, given the rising delta numbers, the move seems to be causing more uncertainty among investors instead of relief.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.