Get Forex buy/sell signals directly to your email and by SMS. To learn more click here The diverge
Get Forex buy/sell signals directly to your email and by SMS. To learn more click here The divergent Bank of England and European Central Bank monetary policies continued to weigh on the EUR/GBP in February. This trend is likely to continue in March. The European Central Bank should leave interest rates unchanged while allowing its stimulus to do its work. This month, the ECB will begin its bond buying program. The availability of credit and renewed confidence in the economy may help to stabilize the Euro Zone, but this wonвЂ™t be known for several months. A stable Euro Zone as well as bottoming action in the crude oil market could help to underpin the British Pound. Bullish traders would welcome any good news because recent GDP data showed the economy had slowed in late 2014. BoE Governor Mark Carney remains optimistic about the economy.
He also believes that the decline in inflation is related to the drop in crude oil prices and should be a short-term event. Despite CarneyвЂ™s beliefs, most traders have taken an interest rate hike in 2015 off of the table. Monthly EUR/GBP Technically, the main trend is down on the monthly chart. The market is not in a position to turn the main trend to up, but because of the prolonged move down in terms of price and time, it is in the window of time for a potentially bullish closing price reversal bottom. Since the main trend is down, traders should continue to press the downside, but need to pay attention to their size so they donвЂ™t get trapped selling to big into weakness. Last month, the Forex pair broke sharply after breaking an uptrending angle from the January 2007 bottom at.6535. If the downside momentum continues this month then the primary target is the next uptrending angle at.7025. On the upside, the nearest resistance is a downtrending angle at.7439.
Crossing to the bullish side of this angle should lead to a test of.7515. Overtaking this angle will indicate a short-term bottom has been reached. There isnвЂ™t one particular price to watch this month that will set the tone, however, investors should watch for a possible вЂњbreak-endingвЂќ closing price reversal bottom that could temporarily put an end to the aggressive shorting. Svenska Norsk Р СѓСЃСЃРєРёР№ Ш§Щ„Ш№Ш±ШЁЩЉШ© TГјrkГ§e EО»О»О·ОЅО№ОєО ЧўЧ‘ЧЁЧ™ЧЄ FX Empire – The company, employees, subsidiaries and associates, are not liable nor shall they be held liable jointly or severally for any loss or damage as a result of reliance on the information provided on this website. The data contained in this website is not necessarily provided in real-time nor is it necessarily accurate. All prices herein are provided by market makers and not by exchanges. As such prices may not be accurate and they may differ from the actual market price. FX Empire bears no responsibility for any trading losses you might incur as a result of using any data within the FX Empire.