We have reached our midterm targets on EURGBP. Two trades closed with 300 pips.
What’s Next?
Fundamentally: The positive developments in Brexit and the hawkish speech by President Carney at the BOE meeting last week may continue the support Sterling and accelarate the bullish move.
What did Carney say at the BOE meeting?
Economy is getting warm When the issue of Brexit is resolved, BoE may go rate hikes faster than the market’s expectations We expect Brexit negotiations to be positive As BOE, we are ready to take all necessary actions.
Technically: The pair moved out of “Buy Zone ” and trading below the Ichimoku Cloud on the weekly chart. On the Daily Chart 0.87200 and 0.86900 supports are the key levels. The breakout of 0.88900 support would accelerate the bearish move. The midterm targets of the pair below 0.86900 are 0.86200 and 0.85500.