EUR/GBP More likely to continue falling

Since the beginning of the week the EUR/GBP is trading lower baked up by the GBP rally and uncertain single currency. Today the EC President Jean-Claude Juncker has reinforced the tension, pointing out on an event in Spain that in the months ahead  the unity of the European Union is likely to be called into question and the upcoming Brexit talks will bring a huge mess.
EUR/GBP sharply fell in the morning but found support at 0.8720. The increasing buyers interest uplifted the pair to currently trade at 0.8758. As seen on the four hour time frame the price is developing below its bearish 20-day and 100-day SMAs and flat 200-day SMA. RSI is at 43 and has started to turn north. Stochastic is yet located within extreme overbought area but is showing good upward momentum. Nevertheless the upside is capped by the 0.8833 level – 23.6% Fibonacci retracement of latest bullish run and the current location of the flat 200-day SMA. Bulls has tried to conquer this level twice this year, but unsuccessfully, so in the short term I see them fail again.  

Key support is provided by the double low around 0.86875 and Fibonacci retracement level . A breach would open doors to 0.8646 (June 8 low). This scenario would be more reasonable for the pair, because except a weak single currently, the Sterling upside momentum picks up pace.
Another "Super Thursday" is coming next week with BoE’s release on its latest monetary policy and Quarterly Inflation Report (QIR), which may bring additional strength on GBP. 

GBP/USD At 38.2% Fibo

The macro data released today in UK failed to set clear direction for GBP/USD and the pair is seen in consolidation mode around 1.3000 handle. 

UK's Industrial Production rose above the expected 0.5% inter-month during June and 0.3% on an annualised basis, but manufacturing came in flat on a monthly basis, advancing  by 0.6% over the last 12 months, which met the market's expectations. 

Additionally the UK’s trade balance figures showed that the trade deficit widened by £2.0 billion to £4.6 billion in June. 

Ahead of the release of the NSIER GDP estimate, the cable marked intraday high at 1.3014 and respectively low at 1.2951. The current market price is 1.30, exactly at 38.2% Fibonacci retracement of latest June to August bullish run. 

On the four-hour time frame the price is moving below its bearish 20-day SMA, while the 200-day SMA has crossed it to above. Indicators are slightly below there mid-lines with stochastic  heading north and RSI with lack of directional strength. 

The pair is facing first resistance at 1.3010 and eventual break will open doors for testing 1.3050. Looking to downside, critical level is the daily low at 1.2951. 

Make sure you are fully equipped

The time has almost come to hear the say of British voters. To be or not be in Europe – the question that spur the mood lately. That show of such an exercise may color our vision of markets and disturb the style of trading strategies.

Whether you express a doubt to be in or out of the market, or just like better to observe and delight the drift of circumstances, make sure you are fully equipped for the scenarios.

The assiduous phrasing  and the twisted prose of the ambitious media will not pass the curiosity of the market movers in an way that can fulfil your expectations.

The situation will be fazed, so pave your way for Brexit time!

What caught my eyes and dragged my attention in time was the last webinar of my broker ActivTrades, that was held yesterday and led by Malte Kaub. The „Metatrader suite” is what exactly you need to be fully equipped and it contains the whole package of Metatrader:

• Metatrader 4;
• Metatrader 4 web;
• Metatarder 5;
• Mobile trading.

A comprehensive overview on each platform along with pointing out the differences and advantages were explained in details. Any platform you have chosen, be sure that is powerful enough to secure your trading strategy with the flexibility and functionality implemented.  In case of any doubts you may turn to webinars archive where the introductions of platforms with full characteristics and solutions are stored.

Compose your pleasure and take advantage of what ActivTrades offers. Don’t let go this amazing opportunity and chase the flashing light of market movers.

And enterprises of great pith and moment with this regard their currents turn awry,

and lose the name of action. Soft you now and observe the upcoming masterpiece.

If you fell from the doubts that chased you and turned the way you feel, but still wonder what platform to choose, you can read all about it here. Enlarge your frame of perspectives, because the temple of knowledge is undeniable precious!

  

London BREXIT Update: One month to Referendum | Webinar review

Brexit time nears and very soon the fluctuation that has towered UK  will  vanish.
The more referendum campaign intensifies, the more UK economy is seen in underlined shaky mode.
But until 23th June the walls of uncertainty will be standing still and most important now is how to outrun the fears that chase the market.

The Brexit scenarios, market reaction and an insightful vision how traders could be positioned were presented on yesterday’s webinar, held by ActivTrades and led by the professional trader Paul Wallace.

The most important questions that will follow Brexit are:
1. What kind of EU/UK negotiations will get?
2. Will we see further EU integration or the opposite?

Brexit scenarios implemented in short and long term are very well explained by this pattern:

What will be the market reaction in short and long term view?
First of all we should think about what will be the short term market reaction driven by the possible consequences for the remaining EU members and then to take into consideration the long term market development based on the assumption of EU development in case of split or integration.

With the upcoming Brexit referendum definitely traders are concerned about trading the GBP forex pairs. Paul Wallace shed a light over the most likely scenarions and shared some tips how traders might be positioned.

Important information

Having in mind that the upcoming referendum will bring significant volatility and turbulence in financial markets, my broker, ActivTrades will protect the capital of its clients at market opening on 20th June 2016 by temporarily increasing quadrupled the required margin under the following instruments:

Forex: GBPUSD, GBPCHF, GBPAUD, GBPCAD, GBPJPY, GBPNZD, EURGBP

Indices: UK100

In addition, temporarily the reqired margin for the following instruments will be increased twice:

Forex: EURUSD, EURJPY, EURCHF, EURAUD, EURCAD, EURNZD, EURHUF, EURNOK, EURSEK, EURSGD, EURTRY
Indices: BLG20, ESP35, EURO50, FRA40, GERTEC, GER30, ITA40, NETH25
Shares: CFD tools on British shares

If you have open positions on the above mentioned tools, ActivTrades warns to monitor the levels of your margin account and if necessary to reduce positions by the end of trading session on 17 June (Friday).

If you are willing to have a brighter outlook, follow this link!

Sterling hovers around $1.45 after set of weak PMIs

Business activity in the services sector in the UK has deteriorated in April, posting uninspired start of the second quarter with hitting lowest levels since February 2013.

UK services PMI for April, according to latest Markit release, shows that the British economy is further slowing down, noting a drop to 52.3 points in April, down from 53.7 points in March amid the expected 53.5 points.

A weaker PMI underlines the additional weakness in economic growth, that indicates it will slow down in the short term.

So finally, within this week the three PMIs (construction, manufacturing and services) fell short of the expectations and thereby GBP is under selling pressure.

GBP/USD is currently trading around 1.45, as daily low was hit at 1.4444. If the pair continue to the downside, the pair most likely will break through the support located at 1.4360. On the upside a key resistance is located at 1.4670.