GBP/USD, EUR/GBP and FTSE 100 Latest - UK Market Webinar
GBP/USD, EURGBP and FTSE 100 – Prices, Charts and Analysis:
GBP/USD Downtrend Remains Intact For Now
Cable is edging gently higher mid-morning, helped in part by a growing risk-on move, fueled by commentary from Fed Chair Jerome Powell who said that the Fed was not out of ammunition to fight the COVID-19 economic slump. Also over the weekend, BoE chief economist said that the central bank was not ruling out further monetary intervention including negative interest rates. While GBP/USD is tending higher, a series of lower highs and lower lows remain in place and these need to be broken to allow the pair to move higher. Initial resistance between 1.2240 and 1.2246 before 50% Fibonacci retracement at 1.2306.
GBP/USD Daily Price Chart (November 2019 – May 18, 2020)
EUR/GBP – A Decisive Range Break?
After trading in a narrow 2 point range for the last six weeks, EUR/GBP broke through resistance on Friday, and more importantly opened above this resistance today. A series of higher highs and higher lows highlight the current positive sentiment in the pair. If the pair stay above 0.8865, then further gains may be made although the market looks overbought, so the pair may enter a short-term consolidation phase for now.
EUR/GBP Daily Price Chart (November 2019 – May 18, 2020)
FTSE 100 Pushing Higher as Risk Sentiment Improves
Global equity markets opened the week higher after Fed Powell’s comments and continue to test the upside. While economic data is expected to show the impact of COVID-19 on global economies, there is a growing sense that with some lockdown measures being unwound, there is light at the end of the tunnel, however far away that is. A dangerous assumption but with central banks printing money with little respite, stock markets look likely to remain underpinned. If the FTSE can break and close above the 6,016 area, then the April 30 multi-week high comes back into play ahead of the gap between 6,239 and 6,402.
FTSE 100 Daily Price Chart (December 2019 – May 18, 2020)
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