(D) EUR/GBP - Short: Support & Resistance + Policy Uncertainty
- From the chart, sellers overpowered buyers, bringing down the price level from the tested/highest point at 0.89058. The pair closed below the support line at 0.88453 and continued to decline until closing at 0.87889. - Although this sell is overextended, EMA 5, 15 and 60 indicate a strong downward trend. - Euro zone wages grew at their fastest rate in two years in the second quarter, and Monetary Policy stimulus is still needed to bring inflation in the euro zone back to the European Central Bank’s target of almost 2 percent. The decision of the stimulus likely to come in October.
* A bounce from the support level at 0.87365 next week would not be a surprise. keeping an eye on this level for a chance to go long instead of short.