Brenda Kelly, Independent Market Strategist, believes the EUR/GBP cross is front running the farm subsidy. The subsidy is due on the 1st October but is usually executed on the last day of September. Kelly thus sees a possibility of the pair revisiting 0.86-.85 levels. ‘Daily is conveying a slightly move”, she adds.
Check the full video - Forex forecast: EUR/GBP front running subsidy payment – Brenda Kelly -
When quipped about Sterling, Kelly replies, “there is still a possibility of a short squeeze. Cable could revisit 1.3120”. While talking about USD/JPY , Brenda cites post Brexit low as the line in the sand. Kelly is joined by Tip TV’s Nick Batsford and Zak Mir.
Outlook – price divergence
The price divergence on the hourly chart if followed by 0.8670 (rising on hourly) would add credence to the failure to hold above the confluence of weekly resistance and 61.8% of 2008 high – 2015 low and open doors for a drop to sub 0.85 levels.
On the higher side, only day end close above 0.8725 (cyclical high) would expose 0.90 area.