EURGBP Technical Overview: ECB Day Ahead

EURGBP Technical Overview: ECB Day Ahead

ECB Day

In a week when the central bank policy outlook has taken a decidedly dovish turn, the ECB’s tone and where it indicates rates are going will be the event of the day. Traders are now betting on a cut in the next year, only months after a raise had been the consensus. The bank’s newly retired chief economist says central banks are going to have a tough time dealing with a world of growing protectionism and declining trust in institutions. For Thursday, the ECB will face a Europe where labor market slack is being underestimated and where there are mixed feelings about Japanification.

Technical Overview

Daily Chart

Pair completed Bearish Crab Pattern and we sold EURGBP. Rising Wedge’s broken.

On the smaller chart, it is trading in a wedge pattern as well. The market is focused on ECB Rate Decision and Monetary Policy Statement.

If it breaks the wedge, 0.88900 would be tested. A Bearish Cypher Pattern would be completed at 0.88900 and we plan to use this pattern as a selling opportunity.

The first support resides at 0.88200. A Dovish ECB Statement would send the pair 0.88200.

We will focus on the breakout of 0.88200- 0.88000 area to add short. Our first target is 0.876000.

I will keep you updated after reading the ECB Statement.

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EURGBP: Information on these pages contains forward-looking statements that 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