EUR/GBP deflated by dovish Draghi comments which bolstered expectations for ECB to cut depo rate, expand/extend QE at Dec 3 meeting . The pair hit session lows at 0.7040 and has hence pared some losses to currently trade at 0.7056.
Draghi said indications that inflation will recover are weakening and that if price stability is at risk, ECB would use all instruments within their mandate. The remarks address a key barometer of economic health that is used to determine what further action, if any, the ECB will take to ease monetary policy.
Strong trend-line support seen for the pair at 0.7040. The pair has taken support and edged higher. Immediate resistance is seen at 0.7078 (session high Nov 12th)
We have closed our earlier short and now recommend buying on dips around 0.7040/50, SL: 0.6980, TP1: 0.7100, TP2: 0.7145
Bullish invalidation on breaks below 0.6925
Draghi said indications that inflation will recover are weakening and that if price stability is at risk, ECB would use all instruments within their mandate. The remarks address a key barometer of economic health that is used to determine what further action, if any, the ECB will take to ease monetary policy.
Strong trend-line support seen for the pair at 0.7040. The pair has taken support and edged higher. Immediate resistance is seen at 0.7078 (session high Nov 12th)
We have closed our earlier short and now recommend buying on dips around 0.7040/50, SL: 0.6980, TP1: 0.7100, TP2: 0.7145
Bullish invalidation on breaks below 0.6925
