13th January 2020
Looking at this pair from a fundamental perspective, we can clearly see that a yearly high has been reached towards the end of 2019. This was particularly due to the recent elections results. Moving forward, the commencement of 2020 has began with a negative forecast in relation to GBP data which has resulted in momentum. The structure of the pair now indicates a higher high followed by a lower high formation, acting as a key at the 1.900 level in order to meet the demand zones of 1.88 and 1.86 respectively. We are initially targeting a yield of 2% (1.88). If we see a clean break of this area, we will target a longer term yield of 4.7%.