2020-10-06 • Updated
Goldman Sachs advised investors to go long on the pound vs the euro. How far may EUR/GBP drop? Let’s find out!
The EU and the UK are planning to reach the Brexit deal in the coming weeks. Wall Street analysts anticipate that both sides will make an agreement as soon as early November, that’s why the British pound is likely to gain since it is really sensitive to Brexit developments. The President of the EU Commission Ursula von der Leyen and UK Prime Minister Boris Johnson have agreed on this weekend to continue talks over main sticking points like fisheries and aid issues. Once the market knows the outcome, the further pound’s further traction will be defined. Overall expectations are more positive, which is beneficial for the GBP. Among pound bulls are Goldman Sachs, Wall Street, and JP Morgan, but, for example, Nomura doesn’t rush nor to buy the pound, neither to sell it, waiting for more clarity in EU-UK negotiations.
EUR/GBP has entered the descending channel, proving the possibility of further pound’s strength. The pair has almost reached the upper trendline, that’s why there’s no more room for the pair to keep rallying up. Therefore, if it reverses from the high of July 27 at 0.9120 and starts falling, it may meet the support at the 200-period moving average of 0.9065. The move below it will drive the pair to Friday’s low of 0.9045. Resistance levels are 0.9120 and 0.9150. Keep an eye on further Brexit news, if you trade the pound!
Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...
Bearish scenario: Sales below 80.00 with TP1: 79.60... Anticipated bullish scenario: Intraday purchases above 80.70 with TP: 81.50...
Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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Don’t waste your time – keep track of how NFP affects the US dollar and profit!
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