Absent the lack of key fundamental surprises I am slowly leaning to a bearish stance on this pair.
The economic situations between the two is very similar. Both are also experiencing a much milder winter than was previously expected which seems to be helping both Germany and the U.K. economically.
In my opinion, the BoE is being more dovish than the ECB regarding inflation expectations and terminal interest rate levels. Perhaps in a bid to achieve price stability.
Divergence between the recent upward movement and the indicators shown suggests this current bullish formation is weak and may soon be exhausted. I believe the pair will likely see a move to the downside. If the current ascending channel (white) fails, I’ll be expecting to see 0.8700, 0.8648 and 0.8600.
POI for short : 0.8860 - 0.8900
The economic situations between the two is very similar. Both are also experiencing a much milder winter than was previously expected which seems to be helping both Germany and the U.K. economically.
In my opinion, the BoE is being more dovish than the ECB regarding inflation expectations and terminal interest rate levels. Perhaps in a bid to achieve price stability.
Divergence between the recent upward movement and the indicators shown suggests this current bullish formation is weak and may soon be exhausted. I believe the pair will likely see a move to the downside. If the current ascending channel (white) fails, I’ll be expecting to see 0.8700, 0.8648 and 0.8600.
POI for short : 0.8860 - 0.8900
Comment:
Take profit 1(8700) was cancelled and all trades closed at manually at 0.86361.