Sterling (GBP) – GBP/USD, EUR/GBP and GBP/NZD Prices and Analysis:
- Brexit talks may achieve little unless both sides show willing.
- GBP/USD eyes initial support near 1.2400.
- EUR/GBP pressing higher but data may dampen any further pullback.
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A busy economic calendar this week with the latest German and Euro-Zone ZEW readings out Tuesday with the German current conditions expected to go further negative. PMI sentiment will be data released on Thursday and while March’s numbers hit multi-year lows, this week’s readings look set to be even lower. Add into the mix the weekly US initial jobless claims, with expectations of another 4.5 million added to the unemployment queue and volatility is likely to remain high all week.
GBP/USD Continues to Fade Back Towards 1.2400
Cable continues to make lower highs and is testing support off both the 20- and 50-dma. A break below 1.204 would set up a new lower low and see the pair test 1.2400 and lower. Any upside in GBP/USD should be capped by 1.2648 in the short-term.
GBP/USD Daily Price Chart (September 2019 – April 20, 2020)
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EUR/GBP Trading Range Remains Narrow
The sell-off in EUR/GBP is slowing and may have made a short-term bottom. The pair’s trading range last week was narrow and indecisive with the 61.8% Fibonacci retracement level at 0.8747 the high price. Above here 20- and 50-dma levels at 0.8788 and 0.8826 respectively guard 0.8867 and 0.8891. A break and close below the 200-dma at 0.8670 may open up further losses.
EUR/GBP Daily Price Chart (September 2019 – April 20, 2020)
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