Description
⋅ EUR/GBP has shown a decisive breakout above 200-DMA at 0.8595, bias higher.
EUR has been supported largely by a pick up in the risk-on trade coupled with increasing weakness in the greenback.
Upside over the last hour gained extra traction, following the comments from the German Chancellor Merkel.
Merkel said that the euro is "too weak" and hence, makes German products cheaper.
Eurogroup meeting could get some attention today ahead of advanced PMIs later in the week and ECB-speakers.
Break above stiff resistance seen at 0.8595 (converged trendline and 200-DMA) has raised scope for test of 0.87 levels.
Momentum indicators on weekly charts are biased higher. The pair has broken above weekly 50-SMA at 0.8534.
Bullish invalidation on close below 200-DMA at 0.8595.
Good to go long on dips around 0.8620/30, SL: 0.8570, TP: 0.8650/ 0.87/ 0.8735
Comment
⋅ Pound sold-off on reports of the Manchester terror attacks.
Investors assess the implications of the terror blast on the upcoming UK general elections.
TP1 hit. Bias higher.
Comment
⋅ The second estimate of UK GDP for Q1 2017 saw growth revised down to 0.2% q/q from the previous estimate of 0.3%.
The downward revision in today’s report suggested that economic growth decelerated sharply in the early stages of the year, to keep GBP suppressed
EUR/GBP is extending consolidation after the pair broke above major resistance at 0.8595 (200-DMA and trendline) on Monday's trade.
Bias higher.
Comment
⋅ Approaching TP2