Price action
I am looking for bulls to fail above todays high to short next Monday, if there is no failure i would look to buy more higher. The later is low probable given the fact that eurgbp is overbought. 0.8000 is critical area throughout next week. I know traders are observing this week high for some clues of buyers failure.
My take on Fundamentals.
Euro area current account surplus and deficit UK's is enough to keep driving Euro against the pound higher. I don't care what anyone is saying on brexit, institutions do not think it has any impact on eurozone economy. Besides, even if it has all the impact they say, the separation process would be longer than expected and the period is big enough to downgrade any certainty (anything can happen before the separation ends).
Other European countries would be of concern
Major fundamental risk for the Europe is countries like Italy who have started feeling the fever of brexit.
I am looking for bulls to fail above todays high to short next Monday, if there is no failure i would look to buy more higher. The later is low probable given the fact that eurgbp is overbought. 0.8000 is critical area throughout next week. I know traders are observing this week high for some clues of buyers failure.
My take on Fundamentals.
Euro area current account surplus and deficit UK's is enough to keep driving Euro against the pound higher. I don't care what anyone is saying on brexit, institutions do not think it has any impact on eurozone economy. Besides, even if it has all the impact they say, the separation process would be longer than expected and the period is big enough to downgrade any certainty (anything can happen before the separation ends).
Other European countries would be of concern
Major fundamental risk for the Europe is countries like Italy who have started feeling the fever of brexit.