Deutsche Bank adviced to sell EUR/GBP this week based on some fundamental weekly forecast:
- "It’s a big week for sterling followed by the BoE’s QIR on Thursday. The question is whether the MPC follow the ECB or Fed’s lead by
signaling either that tightening will be delayed or reiterating the
belief that rate hikes would come into focus at the turn of the year."
- "We think the latter, and with a hike not fully priced by the end of next year, think the risk/reward to being long GBP is favorable going into the meeting."
From the technical point of view - the EUR/GBP pair is on bearish market condition for crossing the key support level at 0.7122 with 0.6935 as a next bearish target. Ichimoku cloud together with Senkou Span lines are located below the price for the bearish condition, and absolute strength indicator is signaling for the bearish breakdown to be started. If the price crosses 0.7122 support level on close bar so we may see the good price movement up to 0.6935 support level for example.
