By: John Ursus
Timeframe: W1 Recommendation: Long Position
Entry Zone: 0.8100 – 0.8150
Take Profit Zone: 0.8400 – 0.8450
Stop Loss Zone: 0.8000 – 0.8050
The EURGBP has entered a correction which was a combination of a much stronger than expected economy in the UK and a weaker than expected economy in the Eurozone. Comments from Mario Draghi, President of the European Central Bank, on Thursday during the press conference which followed the latest ECB interest rate announcement where no changes were made suggested that a move could come as early as during the next meeting in June.
Forex traders should expect the selling pressure to diminish as the EURGBP is trading at a very strong support level right now and some traders may start to take profits at support which could result in a reversal rally as short positions will be covered in order to realize trading profits. The EURGBP is expected to be free of resistance until it reaches the 38.2 Fibonacci retracement level.
