My picks: Short Entry EUR/GBP
Expertise: Fundamentals and Technicals
Average Time Frame of Trades: 2- 10 Days
The EUR/GBP failed to retrace the sell-off from mid-May, and slipped below the 200-Day SMA for the first time since October. The downturn in the pair suggests that investors are turning bearish against the pair as market participants weigh the outlook for future policy, and long-term expectations for higher borrowing costs in the U.K. are likely to push the pair lower as the European Central Bank is widely expected to adopt unconventional tools to stimulate the economy as the Governing Council attempts to put a floor on the interest rate. As a result, I have placed a short-entry at 0.8637, the February low, and have set my target to 0.8333, the 11/20 low, with the stop at 0.8797, the 2/6 high.
