How sterling became a ‘risk’ currency, and what’s next – Special Report

Posted on June 26, 2020 at 12:49 pm GMT

The British pound has become very sensitive to changes in risk sentiment lately, with Cable transforming into a ‘risk on’ – ‘risk off’ pair whose fortunes are connected more to stock market performance than UK fundamentals. As such, a better proxy for Brexit developments in this new era may be euro/sterling. Overall, downside risks seem to outweigh upside ones for the pound right now, especially given the resurgence of infections globally and intensifying Brexit uncertainty, though a powerful rebound later [..]


Technical Analysis – EURGBP crawls towards trend line, clinging to a hike  

Posted on June 24, 2020 at 1:27 pm GMT

EURGBP has reversed from the upper surface of the Ichimoku cloud to the 0.9031 level, that being the 38.2% Fibonacci retracement of the up leg from 0.8281 to the 11-year high of 0.9498. Positive sentiment appears revived after the bounce on the supportive trend line pulled from the February 18 low of 0.8281. Further backing this short-term view are the Ichimoku lines and the upward slopes of the 50- and 100-day simple moving averages (SMAs). However, for now the technical [..]


Daily Market Comment – White House sends markets spinning, European PMIs bolster euro

Posted on June 23, 2020 at 10:30 am GMT

Conflicting statements from White House on China send currencies and stocks for a wild ride But markets back to square one as dust settles, still in a good mood overall Nasdaq closes at new record as US virus cases ease back down European PMIs show France back in expansion, boost euro Navarro channels his inner China hawk, then walks it back Global markets went for a wild ride overnight, after White House trade advisor Peter Navarro – probably the administration’s [..]


Technical Analysis – EURGBP retains neutral mode; approaches 0.9000

Posted on June 17, 2020 at 10:07 am GMT

EURGBP has been developing within a consolidation area since May 15, despite the upside penetration at the end of the previous month. Looking at the last few days, the pair is extending a bullish move above the Ichimoku cloud and the 23.6% Fibonacci retracement level of the up leg from 0.8670 to 0.9055 at 0.8963, heading towards the 0.9000 psychological mark. The RSI is moving sideways above the neutral threshold of 50, while the stochastic entered the overbought zone. A [..]


Flurry of UK data eyed, can the pound keep going? – Forex News Preview

Posted on June 11, 2020 at 10:28 am GMT

A flurry of UK data including GDP numbers for April will hit the markets at 06:00 GMT on Friday, and forecasts point to abysmal readings. Yet, economic data hardly move the markets anymore, so the pound’s performance will likely be shaped by a combination of Brexit news and global risk sentiment. The risks surrounding the currency seem tilted to the downside, though any potential losses may be more visible against the resurgent euro, not so much against the dollar that’s [..]


Technical Analysis – EURGBP flirts with head and shoulders pattern in short term

Posted on June 10, 2020 at 12:19 pm GMT

EURGBP has been in a head and shoulders pattern over the last three weeks and a close below the neckline of the 0.8860 support could endorse this formation, suggesting a downside movement. The 20- and 40-period simple moving averages (SMAs) are acting as strong resistance lines for the bulls and the RSI is moving marginally below the 50 level. Also, the stochastic oscillator is heading south moving towards the oversold zone. Immediate support is coming from the 50.0% Fibonacci retracement level of the [..]


Technical Analysis – EURGBP sellers take control, obstructing advances

Posted on June 3, 2020 at 2:04 pm GMT

EURGBP’s recent ascent to 0.9054 seems to have stalled, reversing back down to the 0.8889 level, that being the 50.0% Fibonacci retracement of the up leg from 0.8281 to the 11-year peak of 0.9498. The current neutral demeanour within the pair is also reflected in the flattened Ichimoku lines. Directional momentum appears to have dried up with conflicting signals now emerging from the short-term oscillators. The MACD, in the positive section, has slipped below its red signal line, while the [..]


Technical Analysis – EURGBP skyrockets to new 2-month high

Posted on May 29, 2020 at 10:45 am GMT

EURGBP surged towards a fresh two-month high of 0.9055 earlier today after picking up momentum above the 0.9000 resistance. Meanwhile, in technical indicators, the RSI is hovering in overbought zone, while the blue %K line of the stochastic oscillator is turning slightly down suggesting a potential downside retracement in the near term. In case of stronger upside pressures the pair could hit the 0.9280 resistance, identified by the peak on March 25. Above that, the 0.9385 barrier from March 23 could attract attention as well. [..]


Technical Analysis – EURGBP breaks sideways pattern, but can it break out?

Posted on May 26, 2020 at 9:44 am GMT

EURGBP spent more than a month trapped in a narrow range with a lower boundary at 0.8680 and an upper end at 0.8860, before breaching it to the upside. Yet, the upside move seems to have encountered powerful resistance near the 0.9000 handle and the pair has turned lower again, igniting doubts about whether this is a real breakout. Indeed, short-term oscillators reflect fading upside momentum, with the RSI pointing down within positive territory and the MACD looking ready to [..]


Daily Market Comment – Hong Kong leads global markets lower as tensions spike

Posted on May 22, 2020 at 9:22 am GMT

Risk aversion deepens as China announces new security laws in Hong Kong Dollar and yen edge higher, global stocks sell off on fears of US retaliation Range breakouts rejected across multiple charts – S&P 500, euro, aussie, loonie Hong Kong sparks worries of new chapter in US-China tensions Global risk appetite crumbled on Friday, after China announced plans to establish an ‘enforcement mechanism’ for ‘safeguarding national security’ in Hong Kong. The news came hot on the heels of legislation to [..]

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