Market Outlook and Analysis (Oct2019 Week2)

Currency Pair: EURGBP

Fundamental Analysis – EURGBP

The Brexit negotiation seems to be hitting a deadlock again. The previous UK PM Theresa May, got the agreement from the EU leaders but was stopped by the UK parliament. This time around, Boris Johnson has gotten the backing of the UK Parliament to negotiate, but the EU leaders appears poised to reject his latest proposals. Giving him one more week to improve this Brexit plans.

Mario Draghi has recently been criticised for not being open to different views on stimulating the EU economy. The recent ECB QE stimulus has not been effective to keep inflation on target.

Technical Analysis – EURGBP

EURGBP H4 Chart: (Trade Review) – Closed off half position at TL Resistance (+94pips)

Managed to take some profits off the table at the Support turned Resistance Trend Line with a +94pip profits. The remaining positions SL has been shifted to Entry Point, making it a risk-free trade.

EURGBP D1 Chart: Bouncing off Support + Resisted by TL

The pair bounced off the Support Zone, forming a falling wedge as it bounced up. This gave me the additional confirmation to be bullish for this pair. For this rally to go higher, it must first overcome the resistance TL at around 0.8930 levels. It has been tested twice and failed.

 EURGBP H4 Chart: Imminent Break Out Soon

Now the pair is being trapped between a Resistance TL and a Support TL, but in a slight uptrend channel. It is imminent that price will eventually break in either direction. Hence that will then be the dominant trend thereafter.


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