EURGBP On Watch
EURGBP is once again starting to look interesting following months of choppy, hard-to-trade price action. The market has rallied firmly off the June lows and is now testing major resistance at the .8719 level. This has been a key resistance level in the pair since early 2021 and a break here would be firmly bullish. Zooming out onto the weekly chart (easier to view given how choppy recent price action has been on the daily), we can see that price is carving out a large inverted head and shoulders pattern. With the retail market heavily short (roughly 85%), there is plenty of room for a breakout higher here.
Keep an Eye On
GBP is weakening today following a set of poor data this morning, headlined by weaker-than-forecast monthly GDP. Later this week, we’ll receive the latest UK CPI reading which is forecast to remain unchanged at 10.1%. Given the broader backdrop, the release is likely lose-lose for GBP as an upside surprise will raise further growth concerns, weighing on GBP and a downside surprise will keep the focus on narrowing policy divergence between the ECB and the BOE, lifting the pair further.
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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.