EUR/GBP Forecast Today 24/5: Testing Support (Chart)
Date
5/24/2024 2:54:28 PM
(MENAFN- Daily Forex)
The euro has gone back and forth against the British pound during the trading session on Thursday. As we continue to pay close attention to the 0.85 level. This is an area that, if you look at it from a longer term standpoint, has been massive support.
So, the fact that we bounced from here probably shouldn't be a huge surprise. Nonetheless, I think this is a
market that you need to pay close attention to, because if we do break down from here, it could end up being a major turn of events. This is an area, though, that has been very difficult to overcome. So therefore, I am probably on the upside, but also recognize that it is more or less a short term trade.
Top Forex Brokers
1 Get Started 74% of retail CFD accounts lose money
It's not something that you can hang on to, at least not until you have a real reason to believe that the euro is suddenly going to be that much stronger than the pound. There are whispers of a cut coming from the Bank of England. I didn't buy it. But even if that were the case, the ECB is going to cut as well of the Same Ahead
So, all things being equal, I think it's all the same. Ultimately, it looks like the EUR/GBP market is trying to hang around between the 0.85 level and the 0.86 level. And therefore, I think we're just simply consolidating. If we were to break down below 0.85, it could open up a move down to the 0.84 level. But again, I think it would take a certain amount of news momentum , something to come into the picture and really send this market reeling.
This is a market that by its very nature of course is very choppy. So, it should not be a surprise at all if we do just simply trade in this 100 pip range. Keep in mind that the pip value in this pair is much higher than the other ones, so you don't need as big of a move to make a decent profit.
That's something that you need to keep in mind when you are trading in this market. The 50 day EMA is near the 0.8570 level and dropping in the 200 day EMA is at the 0.86 resistance barrier. So, it does make a certain amount of sense that it would be difficult to break above either. And therefore, I think we just continue to go sideways.
Ready to trade our Forex daily forecast? We've shortlisted the best currency trading platforms in the industry for you.
MENAFN24052024000131011023ID1108254882
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.