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FxWirePro: EUR/GBP range-bound, consolidates break below daily cloud, bias lower

EUR/GBP is trading in a narrow range as we head into the European session, bias still bearish. The pair is likely consolidating break below daily cloud, bears now target 61.8% Fib at 0.8682. ZEW index of investors’ confi…

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FxWirePro: EUR/GBP range-bound, consolidates break below daily cloud, bias lower
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  • EUR/GBP is trading in a narrow range as we head into the European session, bias still bearish.
     
  • The pair is likely consolidating break below daily cloud, bears now target 61.8% Fib at 0.8682.
     
  • ZEW index of investors’ confidence decreased to 5.1 in March from 17.8 in February, its lowest level since late 2016.
     
  • Further, with the BoE now more firmly signalling a gradual hiking cycle, the case for a lower EUR/GBP has strengthened.
     
  • Technical indicators also support downside in the pair. We see bearish invalidation only on retrace above daily cloud.
     
  • Focus now on ECB meeting and UK unemployment data for further impetus.

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-GBP-finds-support-at-50-DMA-at-08841-break-below-will-see-further-weakness-1203892) has hit TP1/2.

Recommendation: Book partial profits at lows. Hold for further weakness.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest

 

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