My picks: Short EUR/GBP
Expertise: Fundamentals and Technicals
Average Time Frame of Trades: 2 - 10 Days
After placing a short EUR/GBP entry at 0.9055, the 50-Day SMA, last week, the surge on Friday triggered my trade, and I will remain short the pair as the European Central Bank is widely expected to lower the benchmark interest rate further next month. As I expect the euro-pound to hold a broad range over the near-term, I will maintain my target at 0.8810, the 3/2 low however, as the ECB fails to meet on common ground, dovish commentary following the policy meeting in May could warrant a bearish outlook for the single-currency as the outlook for growth and inflation falter.
