The “Brexit cross” is moving and shaking amid negotiations and the slowdown on both sides of the Channel. What’s next?
Here is their view, courtesy of eFXdata:
ING discusses EUR/GBP technical outlook and shifts to a neutral bias but highlights the importance of a close below the lower end of its trading range around 0.8670-30 to trigger a sell signal targeting a move towards 0.8340.
“The short-term weakness continues with prices making new short-term lows within this decline below 0.8672, although prices will meet plenty of support at the lower end of the trading range between 0.8690 and 0.8670,” ING notes.
“We downgrade our rating to ‘Neutral‘ from ‘Up‘, waiting for a bullish set-up around the lower end of this trading range before we will upgrade our rating again. The long-term picture has been sideways between 0.8690/0.8630 and 0.9100 for almost 20 months.
A close below the lower end of the trading range will trigger a serious Sell signal for a decline towards the next solid horizontal support around 0.8340,” ING adds.
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