$EURGBP | Sell Trade | Market Exec |

21. Sept. 2024

Technical Confluences:

• Price action is bounced off an Interest Zone and created a newer low
  
• Price is breaking through a support trendline
  
• To note, Stochastics is moving into Oversold conditions but fundamentally, there is support for EURGBP to be weaker
  

Fundamental Confluences:

• This FX pair is a trade-related pair and normally doesn't move much against one another unless there is a change in fiscal or monetary front
  
• In this sense, we got a gauge of how both central banks, ECB and BOE stance are. ECB is taking on a data dependent stance and is trying to resist cutting interest rates while BOE sent out a hawkish note the other day that majority of them do not want to cut rates
  
• Naturally from a yield perspective, holding GBP compared to EUR is more attractive and this is what we are aiming for.
  

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Will be taking on a short EURGBP position when market reopens on Monday.

This trade may take some time to complete as it there is normally not much action with this pair except during London's trading hours.

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