Pound will strengthen to 80 pence against the euro, a mark that has not been reached since 2016, when Britain decided to leave the EU. Coronavirus pandemic means that the deadline for signing a trade agreement this year may be shifted, which will delay the risks for the currency. Prospects for the pound, which suffered from a sell-off since the country's decision to leave the EU and the coronavirus epidemic may change. Against the dollar, the currency reached its lowest level for 35 years last month. In recent weeks, the pound has recovered its lost positions, but remains 3% lower against the euro, at 87 pence. Prospects for the euro have also deteriorated, as the EU cannot find a compromise on support for economies affected by the coronavirus.
EUR/GBP, 30 min
Pivot: 0.8828
Analysis:
Provided that the currency pair is traded above 0.8781, follow the recommendations below:
Time frame: 30 min
Recommendation: long position
Entry point: 0.8828
Take Profit 1: 0.8899
Take Profit 2: 0.8934
Alternative scenario:
In case of breakdown of the level 0.8781, follow the recommendations below:
Time frame: 30 min
Recommendation: short position
Entry point: 0.8781
Take Profit 1: 0.8723
Take Profit 2: 0.8688
Comment:
RSI is above the neutral area by 50. The MACD is below the signal line and is positive. The currency pair can recover. Moreover, the asset is below 20 MA (0.8828) but above 50 MA (0.8802).
Key levels:
Resistance
Support
0.8969
0.8781
0.8934
0.8723
0.8899
0.8688
EUR/GBP, D1
Pivot: 0.8701
Analysis:
While the price is below 0.9041, follow the recommendations below:
Time frame: D1
Recommendation: short position
Entry point: 0.8701
Take Profit 1: 0.8223
Take Profit 2: 0.7987
Alternative scenario:
If the level 0.9041 is broken-out, follow the recommendations below.
Time frame: D1
Recommendation: long position
Entry point: 0.9041
Take Profit 1: 0.9440
Take Profit 2: 0.9677
Comment:
RSI is below its neutral area by 50. The MACD is negative and is below its signal line. The configuration is negative. Moreover, the asset is below its 20 and 50 MA (0.8959 and 0.8728 respectively).
Key levels:
Resistance
Support
0.9677
0.8223
0.9440
0.7987
0.9041
0.7750
We also advise you to pay attention to the following currency pairs for intra-day trading:
EUR/USD – buy above 1.0840 with 1.0865 and 1.0880 as Take Profit targets. Alternative scenario - if the level of 1.0840 is broken-down, you should consider selling with the targets 1.0825 and 1.0810 as Take Profit. GBP/USD - short positions below 1.2325 with 1.2265 and 1.2245 targets as Take Profit. Alternative scenario - if the level of 1.2325 is broken-out, buy with the targets 1.2350 and 1.2380 as Take Profit. USD/CAD - buy above 1.4165 with 1.4265 and 1.4300 targets as Take Profit. Alternative scenario - if the level 1.4165 is broken-down, sell with the TP 1.4115 and 1.4065.
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