EURGBP - SellThe EURGBP pair has been on a rollercoaster ride lately, but I'm taking a calculated risk by selling EUR/GBP. Here's why I'm leaning towards a stronger pound:
Diverging Monetary Policy:
The European Central Bank (ECB) is taking a dovish stance on interest rates to combat slowing economic growth. This contrasts with the Bank of England (BOE) which might be considering raising rates to curb inflation. This difference in interest rates could weaken the Euro relative to the Pound.
Brexit Bargaining:
The post-Brexit trade deal between the UK and EU continues to be a point of contention. If negotiations sour, it could lead to uncertainty and potentially weaken the Euro.
Trade details are as follows:
Entry: 0.84657
Profit: 0.84046
Stop: 0.84895
1:2.5 trade targeting 60 pips.