Last week marked the consolidation for the most active assets of March 1-15 (which is oil and gold). But next week has a lot to show, be ready to take part!
EUR/GBP looking to correct recent drop
2019-11-11 • Updated
Bears in the EUR/GBP pair remain strong and the outlook remains bearish across the board. However, following an impulsive drop, the pair could start to retrace from the current stage, towards the 50% Fibonacci level at 0.8983. Around that area, we can expect a supply area that could take the pair to test fresh lows below 0.8773. If that happens, next target is placed at the -23.6% Fibo level in 0.8674.
RSI indicator is overbought, but still, it’s showing signs of exhaustion of the bearish trend.
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates?
Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.