The situation on the EUR/GBP pair has been very technical recently. The daily chart shows the supply impulse, which started from a level close to the previous peaks and close to the upper limit of the range of the previous correction. Interestingly, the price has quickly plummeted into its lower limits, so perhaps now will be the time for an upward correction, all the more so as the price has slowed down in the area of the previous few lows.

EURGBP Daily

However, the fundaments are crucial. We still have too many uncertainties about the Brexit and even contradictory data. Yesterday, information about a close agreement between the parties was dispelled and the media speculated that the leader of the opposition was supposed to reject the proposals of the ruling party. On the other hand, the good news from the Eurozone was a surprise for the plus and above the forecasts. We are talking about retail sales and service PMI readings for April, which was above the forecasts. Therefore, it seems that in the short term this may encourage the continuation of the growth correction.

Join us in our Trading Price Action Patterns group for serious traders, get fresh analyses and educational stuff here: https://www.facebook.com/groups/328412937935363/

 

Leave us a comment!

Ransquawk