The EUR/GBP continues to move somehow sideways on the short term, so we’ll have a clear direction only after a valid breakout from the extended range. Price decreased today and resumed the yesterday’s bearish candle, but is still premature to talk about a larger drop because it is located above some very important support levels.
Technically, it is somehow expected to drop in the upcoming period after a valid breakdown from an ascending pitchfork. However, we still need a confirmation that the currency pair will drop significantly in the upcoming weeks. Right now will be better to stay away from the EUR/GBP because we don’t have any trading opportunity, but I hope that we’ll have one very soon.
The Euro drops further also because has taken a hit from the German Trade Balance, which has decreased from 22.3B to 21.4B, more compared to the 21.5B estimate. The European currency wasn’t inspired by the German Buba President Weidmann speech, it has dropped versus all its rivals in the last days and not only against the Cable.
It remains to see how the rate will react later, after the United Kingdom data will be released, the fundamental factors could bring life on the EUR/GBP. The Bank of England will publish the Official Bank Rate, which is expected to remain unchanged at 0.50%. The interest rate was increased by 0.25% in November, that’s why the Pound has appreciated in the last period.
The MPC members are expected to vote unanimously to maintain the rate on hold and the Asset Purchases Facility steady at 435B. The BOE Inflation Report and the Monetary Policy Summary could bring some volatility.

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