EURGBP Short.
Depending on the outcome of the Italian referendum, I will be taking short positions on the EURGBP.
Fundamental:
1) Concerns over a 'hard brexit' are fading (GBP positive)
2) Bank of England on a 'wait and see' stance to further monetary policy easing. No longer are they aggressively pricing in more cuts / QE (GBP positive)
3) Geo political tension in the EU, the Italian referendum, Austrian election, on-going concerns around a banking crisis = uncertainty (EUR negative)
4) French election early next year creates more uncertainty, should Marine Le Pen gain power.
Technical:
1) We are at a key level of support that has been holding since the Brexit back in June.
2) A break of the 50% fib retracement could open up a further move towards the 61.8
3) Current trend is biased to the downside
4) Next key level of support is at 0.8270 at the 200 day MA
Depending on the outcome of the Italian referendum, I will be taking short positions on the EURGBP.
Fundamental:
1) Concerns over a 'hard brexit' are fading (GBP positive)
2) Bank of England on a 'wait and see' stance to further monetary policy easing. No longer are they aggressively pricing in more cuts / QE (GBP positive)
3) Geo political tension in the EU, the Italian referendum, Austrian election, on-going concerns around a banking crisis = uncertainty (EUR negative)
4) French election early next year creates more uncertainty, should Marine Le Pen gain power.
Technical:
1) We are at a key level of support that has been holding since the Brexit back in June.
2) A break of the 50% fib retracement could open up a further move towards the 61.8
3) Current trend is biased to the downside
4) Next key level of support is at 0.8270 at the 200 day MA