EURGBP at crossroads as it approaches new high.
“The pair thrust higher as UK economy show signs of recession.”
Pound sterling bow towards immense pressure as UK Office for National Statistics reported gloomy employment data. A significant shortfall could be observed on Claimant Count Change as it reduces by -19.7K versus forecast of -49.4K. Likewise, Unemployment Rate suffered further setback as it ticks up 0.1% to 3.8% last month. With growing concerns over UK’s economic performance in recent months has cast doubts over Bank of England’s capacity to avoid recession while at the same time curb inflation from climbing higher.
Quick recap on EURGBP
The pair liberates itself from previous downtrend as it extends bullish recovery from low level of 0.8300.
EURGBP Weekly Technical Analysis
In weekly perspective, EURGBP stood tall near 0.8700 threshold, a key level for further bullish confirmation.
EURGBP Daily Technical Analysis
While the pair look seemingly bullish in weekly, it portrays certain extent of short-term reversal in daily perspective.
ORDER: BUY STOP
STOP LOSS: 0.8650
Target 1: 0.8800
Target 2: 0.8830
ZFX Analyst’s Comment
For the pair, we anticipate a short-term pullback before shifting our focus towards a retest near 0.8700.
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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