EUR/GBP Long Entry | 08:49:15 (UTC) Thu Sep 2, 2021 |
Trend change. With little fundamental news coming from the UK to move the British Pound it has been strengthening recently against the US Dollar but weakening against the Euro. However, both GBP/USD and EUR/GBP are nearing resistance on the charts and that could mean at least a pause for breath and perhaps trend reversals. As the GBP/USD chart below shows, the pair has been climbing since a low of 1.3602 touched on August 20. However, it is now not far from resistance from a downward-sloping trendline connecting the lower highs recorded over the past two months. That is now at 1.3833 and the pair may struggle to advance further once the trendline is reached. Similarly, EUR/GBP has been strengthening since a low at 0.8450 recorded on August 10 but trendline resistance for the cross sits currently at 0.8644, with further resistance provided by July 20’s high just above it at 0.8670. These levels also therefore need breaking if the advance is to continue. As for a possible catalyst for such a reversal, next week’s monetary policy meeting of the European Central Bank could provide it if the ECB’s Governing Council is more dovish than currently expected. About 51% of traders are net short.
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https://twitter.com/MantaTechGroup/status/1433349916554760197
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