EURGBP, H1
German ZEW sentiment survey fell to a 6.4 reading from 11.2 in the previous month. The median had been for a rise to 11.7. The rekindling of Fed rate hike expectations as soon as next month, along with Brexit concerns, with the UK’s vote on EU membership now only a month away, have weighed on the index. The current situations component painted a starkly different picture, leaping to a 53.1 reading from 47.7 in the previous month. ZEW noted that despite the strong growth of the Germany economy, “uncertainties regarding developments such as a possible Brexit currently inhibit a more optimistic outlook.” German Q1 GDP, was confirmed at +0.7% q/q,. A Brexit poll by ORB showed a jump in those favouring “Remain” to 55% versus 42% for “Leave,” which has propelled sterling back above 1.4500 against the dollar. UK bookmaker Ladbrokes is now giving 81% odds for the Brits to vote for remaining in the EU at the Jun-23 referendum, up from 79% yesterday and 71% that were being given at the beginning of last week.
I wrote last week (May 19) “The EURGBP looks to have a downside Target 1 0.7530 – 0.7500 and the 200 DMA, further down 0.7420 is a Weekly support and 61.8 FIB, and finally 0.7330 is the 2016 low. The big move in the pair yesterday was three times the normal daily range. It broke through the March and February lows around 0.7720-0.7700 and closed exactly on the 38.2 Fibonacci level and outside the lower Bollinger band. Following such a large move my entry would be triggered on a retracement to the 0.7720 – 0.7770 area”. So we are now SHORT EURGBP.
Janne Muta
Chief Market Analyst
If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:
http://www.topforexbrokerscomparison.com
About Janne Muta, HotForex’s Chief Market Analyst
Janne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.
Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.
“My mission is to help you to become a confident and successful trader”
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.