Hey Traders! 👋
For Day 39/100 of our challenge, we will look at EURGBP short idea and how we can trade the range
Technicals:
- Prior to range, structure was bearish
- Strongly rejected 0.863 key level
- Now retesting middle limit pivot area
- 79% retracement rejected as well
- Expecting the fill of range bottom at 0.852
Fundamentals:
🇪🇺 Despite ECB remaining hawkish, recent data have been negative in both inflation and labor. This gives ECB less room to be hawkish/raise rates further compared to BoE
🇬🇧 The main downside risk for BoE now is the aggressive pricing in of peak rates by the rate markets. However, BoE has done a great job in meeting expectations lately: surprise hike of 50bp and the lack of push back on aggressive rate markets. The UK has also been seeing positive data recently which gives them more room to raise rates to battle inflation. Now, a hard landing due to aggressive rate hikes is also another risk. But it seems that the market isn't paying much attention to that as much as inflation currently.
So that leaves us with the EURGBP short expectations this week. Any changes in catalysts is possible with inflation data from around the world is released.
So stay safe, and see you tomorrow 👍
For Day 39/100 of our challenge, we will look at EURGBP short idea and how we can trade the range
Technicals:
- Prior to range, structure was bearish
- Strongly rejected 0.863 key level
- Now retesting middle limit pivot area
- 79% retracement rejected as well
- Expecting the fill of range bottom at 0.852
Fundamentals:
🇪🇺 Despite ECB remaining hawkish, recent data have been negative in both inflation and labor. This gives ECB less room to be hawkish/raise rates further compared to BoE
🇬🇧 The main downside risk for BoE now is the aggressive pricing in of peak rates by the rate markets. However, BoE has done a great job in meeting expectations lately: surprise hike of 50bp and the lack of push back on aggressive rate markets. The UK has also been seeing positive data recently which gives them more room to raise rates to battle inflation. Now, a hard landing due to aggressive rate hikes is also another risk. But it seems that the market isn't paying much attention to that as much as inflation currently.
So that leaves us with the EURGBP short expectations this week. Any changes in catalysts is possible with inflation data from around the world is released.
So stay safe, and see you tomorrow 👍
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See you there! 👽🥂
See you there! 👽🥂
