Market Outlook and Analysis (Sept2019 Week2)
Currency Pair: EURGBP
Fundamental Analysis – EURGBP
The pound traded stronger with high implied volatility. The key driver for the move higher was the Brexit headlines. The UK parliament rejected the proposal of holding a snap election and pushed for the idea to seek for a 3-month delay in Brexit if there is no agreement reached.
Note that the ECB is releasing their monetary policy statement on Thursday (12th Sept). Policy makers are hinting on a “significant” stimulus.
Technical Analysis – EURGBP
EURGBP D1 Chart: Forming a Bullish Bat
If this is the turning point, the we can see that the MACD-H is showing a bullish divergence. This will be the first signs of weakness. However, I would be more cautious on this trade, the fundamentals brewing in the background could see this pair much lower.
EURGBP H4 Chart: One more test of the lows to complete the pattern
The Bat pattern has not completed yet. I would like to see the price coming down to test the lows again and completing the pattern. Ideally it would be great to see the indicators showing us a bullish divergence for a long trade. Let’s monitor this trade closely next week.
Calling out to those of you who are based here in Singapore. We are running a 3-hr Workshop on the 17th Set (7pm) to share with you how we trade & how you can turn your trading around.
Register HERE today, bring your friend along too.