The British economy contracted less than expected in November
Looking at the chart on the weekly time frame, we see that the euro is discounting against the pound. The pair fails to stay above 0.92000 and slides down to the current 0.88800. Important on this chart is the moving average of the MA100 (blue line) and MA200 (purple line), which we can now view as support or see the beak below as resistance and a signal for a possible continuation of the bearish trend.
On the daily time frame, we can use the Fibonacci retracement level where a couple of hours it tests the level at 50.0%, the previous three times the pair bounced up and whether we will have to wait a little longer. The pullback is possible in any case because a falling channel has been formed, and the pair is at the lower edge of the channel. Now a smaller pullback is possible but as an integral part of that consolidation.
In the four-hour time frame, we see that the pair finds support at 0.88800 and tries to consolidate there and climb up to reduce losses. For the bullish option, we first need a break above MA20 (light blue line) and confirmation candlesticks on the chart; our target is the zone from 0.89000 to 0.89250, where we will again analyze the signs on the chart on the continuation of the trend. Otherwise, we go down to 0.88500, and maybe and 0.88000. The bearish scenario has a stronger impact on the chart at the moment.
From the news for these two currencies today, we can single out the following: The British economy contracted less than expected in November, despite a second lock across the country, data released by the Bureau of National Statistics revealed on Friday. Ending a six-month rise, the gross domestic product fell 2.6 percent in November, but at a slower-than-expected decline of 5.7 percent. The decline reversed the 0.6 percent growth recorded in October. Current locking restrictions will hit economic activity more than they did in November, said James Smith, an ING economist. Given that the current locks are likely to remain in effect until mid to late March. Eurozone exports rose for the seventh month in a row in November, Eurostat’s first estimate showed on Friday. Exports rose 2 percent a month, and imports rose 2.4 percent since October. However, compared to the month before introducing the restrictions in February, both flows were still 4.4 percent and 4.8 percent, respectively.
On the daily time frame, we can use the Fibonacci retracement level where a couple of hours it tests the level at 50.0%, the previous three times the pair bounced up and whether we will have to wait a little longer. The pullback is possible in any case because a falling channel has been formed, and the pair is at the lower edge of the channel. Now a smaller pullback is possible but as an integral part of that consolidation.
In the four-hour time frame, we see that the pair finds support at 0.88800 and tries to consolidate there and climb up to reduce losses. For the bullish option, we first need a break above MA20 (light blue line) and confirmation candlesticks on the chart; our target is the zone from 0.89000 to 0.89250, where we will again analyze the signs on the chart on the continuation of the trend. Otherwise, we go down to 0.88500, and maybe and 0.88000. The bearish scenario has a stronger impact on the chart at the moment.
From the news for these two currencies today, we can single out the following: The British economy contracted less than expected in November, despite a second lock across the country, data released by the Bureau of National Statistics revealed on Friday. Ending a six-month rise, the gross domestic product fell 2.6 percent in November, but at a slower-than-expected decline of 5.7 percent. The decline reversed the 0.6 percent growth recorded in October. Current locking restrictions will hit economic activity more than they did in November, said James Smith, an ING economist. Given that the current locks are likely to remain in effect until mid to late March. Eurozone exports rose for the seventh month in a row in November, Eurostat’s first estimate showed on Friday. Exports rose 2 percent a month, and imports rose 2.4 percent since October. However, compared to the month before introducing the restrictions in February, both flows were still 4.4 percent and 4.8 percent, respectively.
𝐅𝐢𝐧𝐚𝐧𝐜𝐞 𝐁𝐫𝐨𝐤𝐞𝐫𝐚𝐠𝐞 - 𝐒𝐭𝐨𝐜𝐤 𝐌𝐚𝐫𝐤𝐞𝐭, 𝐅𝐨𝐫𝐞𝐱 𝐍𝐞𝐰𝐬 & 𝐅𝐨𝐫𝐞𝐱 𝐁𝐫𝐨𝐤𝐞𝐫𝐬
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t.me/NFT_crypto_news_trading_signals