FX Trade Journal

With Euro and Pound corrections underway the EURGBP is set to narrow into consolidation between 0.8600 - 0.8700 with a target of 0.8700 at the FOMC meeting. Technically the EURGBP is retracing from a trendline rejection at the 0.8750 high following the last two highs since January. Medium term lower target of 0.8500 should the UK terror threat abate and the elections outcome become clear.

EURGBP position trade potential whilst earning positive roll-over. Whilst the Pound recovers from oversold conditions as the risk-premium incurred following the Brexit referendum dwindles on a more certain outlook of the UK economy given higher inflationary pressures and potential rate hikes by the BoE, the risks of the Eurozone are yet to weigh in on the Euro as the elections approach and new talks of a Greek bail-out emerge that will drive the EURUSD to parity and thus the EURGBP lower. Technically a head and shoulders formation since the Brexit referendum will be completed should price break the 0.8400 support. Key support levels to watch for at 0.8300 and then 0.8000.