GBP/USD, EUR/GBP and GBP/NZD Outlooks

GBP/USD, EUR/GBP and GBP/NZD – Costs, Charts and Evaluation:

• GBP/USD might have additional to run.
• EUR/GBP ready for Eurozone Q2 GDP figures later this week.

An absence of heavyweight UK knowledge this week with the calendar dominated by the Federal Reserve assembly on Wednesday and the primary have a look at US and Eurozone Q2 GDP readings on Thursday and Friday respectively.

DailyFX Financial Calendar

Within the webinar we talked about how the continued weak spot within the US greenback – again to a close to two-year low – and the way GBP/USD was benefitting from this weak spot. Sterling has been comparatively flat to weak of late however is displaying indicators of bottoming out towards the New Zealand greenback, whereas additional upside in EURGBP is more likely to be capped till each the German and the Eurozone Q2 figures are launched. Q2 GDP knowledge is predicted to be dire across the globe and lots of this negativity is more likely to have already been priced-in. It could be that this week exhibits the complete impact of COVID-19 and the lockdowns earlier than a development pick-up is recorded in Q3.

EUR/GBP has regained pattern assist after rebounding off the 50-dma final Tuesday. The a number of touches on the trendline affirm the short- to medium-term transfer increased with the multi-month excessive at 0.9176 shut. Above right here the 23.6% Fibonacci retracement degree at 0.9213 stands out.

EURGBP Every day Value Chart (November 2019 – July 27, 2020)

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What’s your view on Sterling – bullish or bearish?? You’ll be able to tell us through the shape on the finish of this piece or you may contact the creator through Twitter @nickcawley1.