Forex Opinion & Analysis

EUR/GBP: PMI Data From UK and EU Will Determine Direction


We can see USD still trading south since Friday, when US stocks were able to recover a bit. However, a higher degree bearish trend can still be in the cards, but intraday trends on some of the majors will depend on the data. We have EUR and GBP PMI figures tomorrow, so I think EURGBP can see some volatility this week.

Technically speaking, we see EURGBP in a bearish intraday trend with five waves down, followed by a current intraday rise that can be corrective, now approaching some resistance at 0.8800. I think we can see a bearish continuation down this week, especially if we consider that EUR/USD is coming higher, into the final stages of a fifth wave, out of a triangle. In Elliott wave terms, moves out of a triangle are final in the sequence. We think the bearish intraday trend can resume on EUR/GBP while the pair is below 0.8900.


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