In today’s comprehensive EURGBP forecast, we will first scrutinize the current economic conditions in the United Kingdom. Following that, we will meticulously delve into the details of the technical analysis pertaining to the EURGBP pair.
UK 10-Year Bond Yield Stable Amid Cabinet Reshuffles
Reuters — The yield on the UK’s 10-year Gilt, a type of government bond, held steady at 4.3%. This comes as UK Prime Minister Rishi Sunak undertook a cabinet reshuffle. Market watchers are eagerly awaiting upcoming data releases on inflation, retail sales, and unemployment later this week.
In the reshuffle, Sunak replaced his interior minister, Suella Braverman, with James Cleverly. This move followed Braverman’s criticism of the police’s handling of a pro-Palestinian march over the weekend. In another significant change, David Cameron was appointed as the UK foreign secretary.
Traders are also looking forward to insights from Bank of England board member Catherine L. Mann. This interest follows last week’s cautionary statement from the bank’s chief economist, Huw Pill. Pill stressed that the forecast of a prolonged need for restrictive monetary policy should not be seen as an absolute commitment.
This reshuffle and the upcoming economic data releases could have significant implications for the UK’s financial markets.
EURGBP Forecast: A Deep Technical Analysis
The EURGBP trend is currently bullish, with trading patterns indicating an upward flag. However, the uptick momentum has seen a slight decrease this week after the EURGBP price reached the middle line of the bullish flag on the daily chart.
For a more detailed understanding of the price action, let’s delve into the EURGBP 4-hour chart. In the 4-hour chart, the pair has broken the bullish trend line (indicated in red). At present, it is testing the 0.872 pivot. If the price closes below the pivot, the correction is likely to continue towards the lower levels, starting with the 0.868 support (S1).
It’s important to note that the market is predominantly bullish. Therefore, shorting the currency pair is not recommended. The 0.868 deck provides a substantial supply zone to increase bullish bids on the pair.
Stay tuned for more updates on the EURGBP forecast and make informed trading decisions.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.