Sterling bears have acted as an engine which continue to provide the EURGBP with enough momentum to venture towards the 0.80 resistance. This pair has become increasingly bullish on the daily timeframe as there have been consistently higher highs and higher lows while the MACD trades to the upside. Prices have found comfort above the daily 20 SMA and a breakout above 0.795 should open the gates to 0.80. This reactive combination of EUR strength and Sterling weakness continues to provide bullish investors the inspiration to keep this pair buoyed. Bulls have enough breathing room if a correction was to materialize with prices remaining firmly bullish as long as the 0.77 support defends.
The struggle is visible but the NZDUSD bulls are prevailing in this tug of war which has caused prices to move erratically. This pair is more skewed to the upside and Dollar weakness may act as a catalyst which could provide the foundation for buyers to send this pair back towards 0.6800 in the medium term. From a technical standpoint, prices are hugging the daily 20 SMA while the MACD trades to the upside. A decisive break back above 0.6700 should open a path towards 0.6850. This bullish outlook remains valid as long as bulls can defend 0.6550.
The growing anxieties over the immeasurable impacts of a Brexit to the UK economy have offered enough encouragement for bearish investors to continually attack the Sterling and this can be viewed in the GBPCHF. This pair is quite bearish on the daily timeframe as prices are trading below the daily 20 SMA while the MACD also trades to the downside. A breakdown below 1.375 should open a path towards 1.350. This bearish setup remains valid as long as prices can keep below 1.4050.
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