EURGBP Technical Analysis and Trade Idea
After ECB’s rate decision to keep the rates unchanged, EURGBP dropped and broke the midterm support at 0.87250.
We have published our trade plan for EURGBP at the beginning of April. New visitors can read the idea:
EURO has some bearish themes:
Some EU members, with the support of President of the European Council, Donald Tusk, intend to block Britain from euro clearing.
Growth has converged, but monetary policy has not. Experts argue peak divergence – on the respective balance sheets – is still ahead.
Germany continues to grapple with its political troubles and the possibility of facing new elections in 2018.
The Euro’s appreciation is likely to spur the ECB’s policy response, most likely verbal intervention on the euro being too strong.
The credibility of the ECB could be affected if the environment changes forcing the central bank to renege on its earlier guidance. Rates may not rise until well after the end of asset purchases, which would push the first rate hike out to 2019.
On the H4 Chart, the price is below EMA 50,100 and 200.
0.86670 and 0.86370 are the first targets of the pair.
0.86370 is one of the important supports. 0.85500 will be the first target of the pair, as soon as it breaks below 0.86370.
Our midterm targets are:
DISCLAIMER: This is a technical analysis study, not an advice or recommendation to invest money
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EURGBP : Involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. Chartreaderpro does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility