ridethepig

Pound continues to struggle... crunching time for bulls

Long
FOREXCOM:EURGBP   Euro / British Pound
=> We have a very advanced call this time as both Euro and Pound have been under pressure via rate differentials this summer
=> With euro under attack via concerns over banks' exposure to Turkey. However, we see these headlines as an exaggeration as most banks in Spain have significantly lower contagion risks than reported.
=> Here we are expecting euro to enter back in fundamental trading mode as an improving macro backdrop relative to that in the UK
=> The UK continues to be clouded via political risk and with BOE expected on hold till 2020 we expect an upturn in EURGBP as an easier way to play euro strength in the quarters ahead than EURUSD .
=> Technically we have strong resistance at 0.9020 with support around 0.8890. A break above will trigger the flows towards 0.92xx and beyond for 2019. Anything else will indicate further chop inside the 0.87 - 0.90 range.
=> Good luck

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