EURGBP halt yesterday’s decline and now consolidates near 0.8870 ahead of London. More detail about this is discussed in the 7 February EURGBP Technical Forecast. Read on!
7 February, GKFX – EUR/GBP has middled through Asia, consolidating around 0.8870 through the Tokyo session. The pair has gained in recent trading days, as the GBP appears to be the biggest risk loser out of the basket of major currencies, giving up ground to its traded pairs as risk aversion drove markets to seek safer assets recently.
EUR has been recalcitrant to give back any more gains following yesterday’s drop during the London-NY overlap, suggesting plenty of buyers are lurking nearby, ready to send the pair further up the charts.
The ECB will be meeting in Frankfurt today at 08:00 GMT for their Non-Monetary Policy Meeting, where they will be discussing TEU Article 50 matters with Chief Negotiator Michel Barnier regarding Brexit details.
If risk appetite returns in a big way, GBP may find itself coming back strong, but with inflation fears sparking higher bond yields and equities feeling the pain around the globe, risk assets continue to find themselves in a strenuous position.
7 February EURGBP Technical Forecast
The intraday support of choice appears to be 0.8868 while buyers will have to push past resistance at 0.8880 heading into the European market session; Daily charts show potential for a bullish correction, with price beginning to trade above the 200-day SMA and the 34 EMA beginning to accelerate upwards.
Today’s pivot points:
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