EUR/GBP Upcoming Trend - Strong Sell?EUR/GBP News:
🔆The EUR/GBP pair slips to around 0.8295 during early European trading on Tuesday as the Pound Sterling (GBP) gains strength following the UK employment report. Investors will also be watching Bank of England (BoE) Governor Andrew Bailey's speech and the release of Germany’s ZEW Survey for February later in the day.
🔆According to data from the UK Office for National Statistics, the nation’s ILO Unemployment Rate remained unchanged at 4.4% in the three months leading up to December, outperforming the expected 4.5%. However, the Claimant Count Change rose by 22K in January compared to the previous -15.1K (revised from 0.7K), falling short of the forecasted 10K. Despite the mixed employment data, the GBP maintains its strength.
🔆Earlier in February, the BoE lowered its benchmark interest rate to 4.50% from 4.75%. Policymakers at the UK central bank noted that inflation could reach 3.7% later this year, nearly double the BoE's 2% target. This might prompt the BoE to adopt a more cautious tone regarding further gradual rate cuts.
🔆On the Euro side, the dovish approach of the European Central Bank (ECB) could put downward pressure on the Euro (EUR) against the GBP. The ECB remains comfortable with its plan for three additional rate cuts this year, following a 25 basis points (bps) decrease to 2.75% last month.
Personal opinion:
🔆EUR/USD will continue to decline due to the different interest rate policies of the two central banks. In addition, Trump's tariff policy on the UK is less affected than the Euro, which is likely to boost the strength of GBP in the near term
Analysis:
🔆Based on important resistance - support levels and Fibonacci combined with basic economic information to come up with a suitable strategy
Plan:
🔆Price Zone Setup:
👉Sell EUR/GBP 0.8310 -0.8330
❌SL: 0.8360 | ✅TP: 0.8270 – 0.8230– 0.8200
FM wishes you successful trading💰💰💰
