The British pound is gaining across most of its major counterparts early in today’s European session. As of this writing, the exchange rate of pound-to-euro is at 1.1690 for November 25, 2019. Meanwhile, EURGBP is currently trading at 0.8553.
In today’s forex news, only the German Ifo Business Climate report was released. It printed a reading of 95.0 which topped forecasts by 0.1. The survey that includes 9,000 respondents implies that business conditions have improved this November after October’s reading only came in at 94.7. However, beneath the positive headline figure, Ifo warns that Germany’s manufacturing sector is “stuck in a recession.”
Most brokers offer EURGBP and not GBPEUR on their forex trading platforms. And so, you may want to look for the the daily and hourly charts of EURGBP as it presents a potential sell trade.On the hourly time frame, EURGBP looks to have broken support at the rising trend line (from connecting the lows from November 18 and November 21). This suggests that sellers could be dominating today’s trading. The near-term support level is at 0.8521 where EURGBP made lows last week. If that does not hold, we could see the exchange rate drop to 0.8485 where the currency pair made bottomed on March 12, March 27, and May 6. EURGBP hitting this level would mean that the pound-to-euro exchange rate will be around 1.1800.
With that as take profit (0.8485), the entry at 0.8555, and stop above today’s Asian highs at 0.8585, that could be a 2:1 trade.
Meanwhile, if last week’s lows hold, EURGBP could bounce to test resistance at the broken trend line around 0.8562 where Friday’s Asian session lows are.Download our latest quarterly market outlookfor our longer-term trade ideas.
Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.