Both GBP and EUR Under Pressure of Breaking to Lower Levels

  • 13
    May, 2020

    The GBP and the EUR are now presenting bearish characteristics which is why it may be a good time to look at both GBPUSD and EURUSD for some opportunities.


    Lack of EU and UK Trade Progress Affects the Strength of the Pound

    The EU-UK Trade talks have been the talk of the week. The focus of the trade talks are centered around future governance of both states, criminal judicial cooperation, and fisheries. A new session of trade talks will be able to see if there is any progress made in any of these aspects. Should there not be any progress with these aspects, the risk sentiment of the currency will go lower.

    As it is, GBPUSD is already playing at the 1.22935 level. A strong downward movement may result in a breakout of this range movement.


    Pressure On the Side of the EUR

    EUR also seems to be in trouble at the moment. A report on the latest economic conditions of the EU that comes from Federal Reserve Chair Jay Powell may result in an even further drop in price.

    At the moment, there are some indicators that the demand of safe havens will continue to rise following some of the economic conditions of the global market plus the concerns of second wave pandemics. Investors may flock to the USD pushing down the two aforementioned currencies.




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