FX Market Analysis

Technical Analysis: EUR/GBP: the battle is on – FBS

Key indicators: Performance in 2020: -1.7%, Last day range: 0.8296 – 0.8388, 52-week range: 0.8276 – 0.9324

What’s happening? EUR/GBP is falling. Why? Mainly, for the same reason, the EUR/USD is falling. During our analysis, we saw that there are multiple reasons for the USD to get stronger and none for the EUR. Almost the same applies to the EUR/GBP. Although we cannot state that the British economy has been doing as great as the American, the GBP has more ground to gain value. At least, for now.

That’s it? No, there is always something you can point to. Especially, in a case of such a fall like that with the EUR/GBP. Recently, Boris Johnson’s conditions on the Chancellor of the Exchequer Sajid Javid made the latter resign. Some see that as a result of the mismatch between the government spending and investment restrictions, others see a more personal element in that opposition while the British Prime Minister seeks to have maximum control possible, now over Treasury. In any case, the GBP received this news as something promising, probably betting on Johnson’s strong views on bolstering the British economy and optimism about Brexit.

Technical levels: Resistance 0.8400, Support 0.8280

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