Triggering the Article 50 was bullish for the pound as I expected. Three long red candles appear last week and we are now seeing a retracement. Indeed the pair reached the 1.618 level of the first impulse and we might expect a retracement to the 0.382 level of the second impulse. The pair also challenged the 200 EMA and it might pierce it soon.
Best level for the short entry is 0.85747 and the stop loss should be placed at the 0.86355 level.
The pair is up today because of the lower than expected UK Manufacturing PMI . However I am pretty sure that the BOE will need to react against the rising inflation by raising interest soon.
Moreover the election in France is bringing uncertainty to the Eurozone, we should keep an eye on the next debates but keep in mind that the markets will go mad if Marine Le Pen reach the second round. We should hope that she is not elected because that would create a big crisis in the Eurozone. I'm seeing a Macron vs Le Pen face-off for the second round and with his centrist views he might steal the vote from both the left and the right parties.
Keep an eye on the trendlines and the big support at the 0.83045 level.
Cheers !
Best level for the short entry is 0.85747 and the stop loss should be placed at the 0.86355 level.
The pair is up today because of the lower than expected UK Manufacturing PMI . However I am pretty sure that the BOE will need to react against the rising inflation by raising interest soon.
Moreover the election in France is bringing uncertainty to the Eurozone, we should keep an eye on the next debates but keep in mind that the markets will go mad if Marine Le Pen reach the second round. We should hope that she is not elected because that would create a big crisis in the Eurozone. I'm seeing a Macron vs Le Pen face-off for the second round and with his centrist views he might steal the vote from both the left and the right parties.
Keep an eye on the trendlines and the big support at the 0.83045 level.
Cheers !
Comment:
UK PMI lower than expected and EU Retail Sales Higher than expected. But the bear remains in control despite the news !
Keep an eye on the UK Construction PMI in around 15 minutes
Draghi is speaking at 14:30