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    BRAND MARKET ANALYSIS AND NEWS EURGBP update, U.K. Uncertainty Could Push the Pair Higher Market News

    EURGBP, Daily

    Eurozone Q4 GDP showed mild growth of around 0.3% Q/Q. Weak EU PMIs are putting some pressure on the EUR, while discouraging data is expected to continue from the Eurozone, which will keep ECB dovishness intact. The fact that the ECB is ready “to do more” to bring inflation back to target, means that traders will be seeking clues during the next monetary policy meeting in March. The question remains what exactly Draghi still has up his sleeve.

    Yesterday, the GBP saw the biggest one day loss in 6 years on fears that the U.K. will leave the E.U. See my February 22 post “GBPUSD Update, Trading Lower on Brexit Fears”. With uncertainty in the backdrop, we expect that further pressure on the GBP will prevail in the coming months before the June 23 referendum.

    Technically, the short term EURGBP price trades above the tentative downward sloping trend-line and above its short term moving average (10 period). My conclusion is that the underlying trend is up, and I remain with long positions as long as price can hold above the 0.7700 area, for initial targets within the 0.7900 – 0.8000 zones.

    Feb 22 EURGBP SRL

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    John Knobel 

    Senior Currency Strategist

    HotForex

    Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.


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