Today’s free forex signals service is a buy on the EUR/GBP as we expect the market to observe Euro’s upside correction after a heavy fall in the last week.
The EUR/GBP pair remains in the advantageous position as the Euro remains calm on the day while the British pound suffers heavy losses in the wake of rising COVID-19 cases in the country, supply disruption and the slow economic recovery.
The EUR/GBP price breaks above the key SMAs on the 4-hour chart, while the 100 and 200 SMAs on the same chart are going to make a bullish crossover. Although the price is off the highs, the bulls look promising to test the round number at 0.8600 and higher.
Creditors of Evergrande owe around $300 billion. Efforts to rescue it are at a standstill. A dark cloud is hanging over markets worldwide due to uncertainty about the impact on suppliers and other construction companies. Concerns over global growth are helping to boost the dollar as a safe-haven asset. Investors remain concerned about the rapid expansion of the delta variant and the slowdown of the global economy.
Olaf Scholz remains in a good position to succeed Angela Merkel as Federal Chancellor. After much discussion, a coalition including the business-friendly FDP would calm nerves. However, the Euro is weighed down by the uncertainty before the vote on Sunday.
After last week’s CPI data, the Bank of England has to announce its rate decision and potential schedule for the rate hike. The central bank is expected to announce a rate hike by the first half of 2022. However, the uncertainty around the event is currently weighing on the British pound. A weaker pound helps the EUR/GBP bulls to soar.
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Free forex signals – EUR/GBP Buy at 0.8574
Instrument: EUR/GBP
Order Type: BUY STOP
Entry price: 0.8574
Stop Loss: 0.8523
TP1: 0.8646
Our Risk Setting: 1%
Risk / Reward Ratio: 1:1.4
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Saqib Iqbal
