EURGBP LONG TERM SHORT: Fundamental and Technical
Technically EURGBP is overvalued, trading outside 800 period BB on the daily chart.
Long term bearish divergence is seen towards 0.90 and 0.92.
Targets = 0.86 (missed monthly pivot) and 0.81 (missed monthly pivot) with profit being taken every 100 pips along the way to these targets.
Fundamentally the Euro should remain under pressure since Draghi has not changed his stance on QE and rates. This may change in December, however.
More importantly, the BoE should not cut interest rates further in the wake of strong UK data since Brexit. This should support Sterling.
Long term bearish divergence is seen towards 0.90 and 0.92.
Targets = 0.86 (missed monthly pivot) and 0.81 (missed monthly pivot) with profit being taken every 100 pips along the way to these targets.
Fundamentally the Euro should remain under pressure since Draghi has not changed his stance on QE and rates. This may change in December, however.
More importantly, the BoE should not cut interest rates further in the wake of strong UK data since Brexit. This should support Sterling.
Trade closed: target reached:
Done!