Apr. 30, 2021
After opening at 0.8692, EUR/GBP reached 0.8718, breaking a 2 month record. Later, it lost 17 pips and is now trading at 0.87.
This in-between state for Euro/Pound is reflected by market data published as Germany Unemployment Change published yesterday at 7:55 AM came out at 9,000, falling short of the -10,000 projections and continuing its decline from the previous -6,000 figure. Released today at 7:30 PM, Euro Zone's CFTC EUR speculative net positions showed an uptick coming in at 81,000, up from the previous number of 80,800. United Kingdom CFTC GBP speculative net positions were released today at 7:30 PM with a figure of 29,200, This is better than the previous number of 25,200.
In terms of trend indicators, we can see that at 0.8675, Euro/Pound made an initial breakout below the 5 day Simple Moving Average, an indication of a negative trend. Asset volatility analysis shows that the upper Bollinger band is at 0.873, indicating a downward move might be next. In contrast, Euro/Pound is climbing away and is now 98 pips from the 0.86 support line.
Overall, looking at the technical analysis landscape, it seems Euro/Pound might be pointing down in the short term.
While the Euro/Pound is pretty flat so far today, mixed performances are seen elsewhere as The British Pound lost 138 pips (0.9%), making its largest single-day drop since September 2020. After 4 months, GBP/CAD falls below 1.71 levels. USD/HKD trading close to 7.7674, with no major change. NZD/USD is down to 0.7162, losing 82 pips after opening at 0.7245.