GBP/USD, EUR/GBP and GBP/NZD – Prices, Charts and Analysis:
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A lack of heavyweight UK data this week with the calendar dominated by the Federal Reserve meeting on Wednesday and the first look at US and Eurozone Q2 GDP readings on Thursday and Friday respectively.
In the webinar we talked about how the ongoing weakness in the US dollar – back to a near two-year low – and how GBP/USD was benefitting from this weakness. Sterling has been relatively flat to weak of late but is showing signs of bottoming out against the New Zealand dollar, while further upside in EURGBP is likely to be capped until both the German and the Eurozone Q2 figures are released. Q2 GDP data is expected to be dire around the globe and a lot of this negativity is likely to have already been priced-in. It may be that this week shows the full effect of COVID-19 and the lockdowns before a growth pick-up is recorded in Q3.
EUR/GBP has regained trend support after rebounding off the 50-dma last Tuesday. The multiple touches on the trendline confirm the short- to medium-term move higher with the multi-month high at 0.9176 close. Above here the 23.6% Fibonacci retracement level at 0.9213 stands out.
EURGBP Daily Price Chart (November 2019 – July 27, 2020)
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