EUR/GBP
there, two different bearish formations were present. There was a bear flag as taken from a bullish channel that arrived after a test of the .8500 handle; and bigger picture, there was a descending triangle present with that .8500 level helping to set horizontal support.
The other side of the matter, however, was a relative dearth of volatility so far in 2024 trade as the pair had spent much of the year within an approximate 120 pip range. But, given the fundamental backdrop where the ECB seems closer to cuts than the BoE, there’s an argument for continued divergence between the two economies.
At this point the .8500 handle has come back into play and there’s potential for the descending triangle to fill-in.
The other side of the matter, however, was a relative dearth of volatility so far in 2024 trade as the pair had spent much of the year within an approximate 120 pip range. But, given the fundamental backdrop where the ECB seems closer to cuts than the BoE, there’s an argument for continued divergence between the two economies.
At this point the .8500 handle has come back into play and there’s potential for the descending triangle to fill-in.
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