With all the not-so-good news about GBP (like the disappointing UK Construction PMI data) already priced in and highly probably rate hike by BOE on Q4 this year, GBP remains bullish. EUR on the other hand may seem bullish in the long-term, but most likely will go sideways or bearish in the short-term because of political risks in Catalona, Spain and weakened support for Germany's Merkel.
USD seems to be recovering now too, so more bearish sentiment on EUR in general (also shorting other USD pairs on daily trades but since NFP news is coming this week, shorting EURGBP seems to be a more stable idea here for swing trading). Looking at the weekly chart, it seems highly likely that this pair will undergo either a correction or go sideways. Setting up a sell stop order with TP at S2 pivot line (daily chart), and SL near prior period's S2 (daily chart).
www.fxstreet.com/new...abobank-201710031243
www.express.co.uk/fi...construction-figures
www.bloomberg.com/ne...n-test-after-victory
Daily:
Weekly:
Confidence: B (because of recent news for both pairs and political risks, but they seem to be all priced in already)
USD seems to be recovering now too, so more bearish sentiment on EUR in general (also shorting other USD pairs on daily trades but since NFP news is coming this week, shorting EURGBP seems to be a more stable idea here for swing trading). Looking at the weekly chart, it seems highly likely that this pair will undergo either a correction or go sideways. Setting up a sell stop order with TP at S2 pivot line (daily chart), and SL near prior period's S2 (daily chart).
www.fxstreet.com/new...abobank-201710031243
www.express.co.uk/fi...construction-figures
www.bloomberg.com/ne...n-test-after-victory
Daily:
Weekly:
Confidence: B (because of recent news for both pairs and political risks, but they seem to be all priced in already)