GBPEUR #Gold #NasdaqThis important pairing is showing early signs of some surprises. Perhaps the UK’s policy of studied incompetence is about to yield fruit as the pairing need only close a session above 1.13775 presently to exceed the downtrend since 2015. From our perspective, this enters a brave new world, one which does not include parity as an immediate potential!
The immediate story is fairly straightforward. In the event the relationship trades above 1.1412 or closes a session above BLUE, it enters a phase where some recovery to an initial 1.1643 makes sense. Visually, a stumble is expected at such a level but if bettered, Sterling could power upward to 1.2034 and we’ve no doubt any rise to such a level will provoke some stutters. Since the Brexit vote, the 1.20 level has provided a ‘ceiling’ for any rises.
Of course, there will be a UK politician making plans to sabotage any strength for the pound in an effort to make themselves unelectable!
Unfortunately, the earliest sign for a serious drop shall come, if the pair now trades below 1.105, this permitting weakness down to an initial 1.0875. Secondary, if broken, calculates at 1.069. Perhaps more importantly, by breaking below RED, the pairing shall once again find itself languishing in parity territory.
For now, it’s perhaps worth watching for any surprising moves upward, something we really did not anticipate writing in regard to the UK pound.
|
Time Issued |
Market |
Price At Issue |
Short Entry |
Fast Exit |
Slow Exit |
Stop |
Long Entry |
Fast Exit |
Slow Exit |
Stop |
Prior |
|
10:03:46PM |
BRENT |
62.69 |
|||||||||
|
10:05:35PM |
GOLD |
1280.75 |
1276 |
1271.5 |
1263 |
1284 |
1285 |
1286.9 |
1290.3 |
1280 |
‘cess |
|
10:08:13PM |
FTSE |
6980.26 |
|||||||||
|
10:09:40PM |
FRANCE |
4871.5 |
|||||||||
|
10:11:59PM |
GERMANY |
11151 |
|||||||||
|
10:20:30PM |
US500 |
2664.92 |
|||||||||
|
10:23:04PM |
DOW |
24646.9 |
|||||||||
|
10:24:59PM |
NASDAQ |
6757.99 |
6731 |
6711.5 |
6676 |
6770 |
6776 |
6782 |
6799 |
6736 |
|
|
10:26:46PM |
JAPAN |
20729 |