On Thursday, trading of EURGBP was higher 0.29% at 0.8904. This was after a bounce-back from the 4-month low as Brexit pressure lingers.
Pound traders will be strictly observing the speech by PM Boris Johnson. He will be announcing the final Brexit offer to the European Union.
Meanwhile, the statement of Bank of England’s Saunders indicates an opportunity of an interest rate cut. It is despite the fact avoidance of a no-deal Brexit.
He also added that interest rates could go either way after Brexit. Moreover, the persistent uncertainty weighs on the UK economy.
The pair EURGBP holds above the critical 200-day moving average. This means there is an undamaged positive momentum.
On the technical analysis side, the momentum is impartial for the short term.
Bears are in control for the longer term. This is to the reason that the pair is trading below the 50- and 100-day moving averages.
On the upside, immediate resistance stands at 0.8914 today’s high, while a break above will open the way for a move up to 0.8968 the 100-day moving average.
Short Positions Owned by Investors
An entry point can be accessed when the pair breaks convincingly above the 0.8914 top. The information is for those in search of buying the pair.
On the downside, the first support stands at 0.8876 from today’s low. Then at 0.8831 the 200-day moving average.
Meanwhile, the next support level is defined at 0.8723 the low from May 21st.
Investors owning short positions can sit restfully as long as the pair trades below 0.89.
Elsewhere, Boris Johnson has assembled his Cabinet today. This is for crisis talks after he finally put together a Commons majority for a Brexit deal. On the flip side, the EU looks set to reject it.
The PM and his senior team are also taking stock following the UK’s plans that were dramatically unveiled.
However, EU chief Jean-Claude Juncker gave a response. He said, welcoming of “positive advances” will happen, but some of the ideas were “problematic.”
- Trading Instrument