#EURGBP Cross Gains Amid #CABLE Weakness - A Classic of its Own
In contrast the positive effects of #CABLE's weakness provided the #EURGBP Cross rate a sustain move relative to its established direction as it penetrated its trend line resistance on the way up at the opening gap traded @0.8836 as the #EURUSD stayed @1.0605 levels at the Asian open.
There are only tow ways to interpret this move either a run away gap which would push further. Or a pullback session to cover such gap well within the two major turnover sessions in Europe and the US trading session. The session ahead will dictate price action and swings in both direction before finalizing its mark on the market for the start of the week. But the fundamentals on UK BREXIT surrounds the negative outlook prevailing. However, do not discount any probability of a price recovery as it nears its initial objective @1.1930/40 levels and an extension below much lower than 'Flash Point' previously traded at.
The tech side of the EURGBP rate is again a typical BASIN / CUP formation where it would find some completion along the next trading days or week ahead. As prices move so does the increase in volatility.
There are only tow ways to interpret this move either a run away gap which would push further. Or a pullback session to cover such gap well within the two major turnover sessions in Europe and the US trading session. The session ahead will dictate price action and swings in both direction before finalizing its mark on the market for the start of the week. But the fundamentals on UK BREXIT surrounds the negative outlook prevailing. However, do not discount any probability of a price recovery as it nears its initial objective @1.1930/40 levels and an extension below much lower than 'Flash Point' previously traded at.
The tech side of the EURGBP rate is again a typical BASIN / CUP formation where it would find some completion along the next trading days or week ahead. As prices move so does the increase in volatility.
The market have reacted towards a 'softer' stance from Theresa May on the BREXIT that led to a remarkable price recovery of CABLE. The same price swing form an opening gap that occurred post ERM which we made mention where prices reversed and recovered in the US session.
CABLE is currently trading above 1.2350; which is quite early since we have three more trading days to go for the week. The closing for the end of the week is critical price to watch from hereunto.