Search ForexCrunch

Our free forex signals today is the EURGBP cross and we have the entry, stop and take profit levels for you. But before we get to that, let’s look at the background for the pair.

This week has been dominated by the shift in the European Central Bank’s stance regarding inflation.

The previous position of “at or just under 2%” has been loosened significantly in what by eurozone standards is a fairly momentous move. Now the ECB is relaxed about the inflation rate moving above 2%, but obviously providing that’s not too far.

ECB chair Christine Lagarde spoke about the ramifications of the policy review today and it sounds like a win for the hawks in Frankfurt. But the fact that the Governing Council unanimously decided to loosen policy is clearly dovish.

Lagarde was at pains to underline that the policy review shift was in response to abnormal circumstances, albeit circumstances that have persisted for some time. She of course has in mind the unprecedentedly low interest rates since the financial crisis of 2008/9.

Lagarde: ECB’s ‘especially forceful’ monetary stimulus is only for abnormal times

The ECB chair said that the “especially forceful” monetary policy in the form of the various stimulus packages was needed because of low prices and the deflationary changes that entails.

But forex traders will have noticed that Lagarde and the Council went further when they acknowledged that an overshoot of the 2% target may be necessary.

Not surprisingly then, the pair has been slipping since Thursday, but there are reasons to expect that to be arrested in the immediate term on sterling weakness.

UK data points to slowing growth rebound

UK GDP was way below forecasts, coming in at 0.8% against the 1.7% that was expected, with cuts to car production having a big impact.

Also, UK industrial production grew by just 0.8% versus 1.5% expected by economists.

The weak data are early signs that supply bottlenecks and labour shortages might be starting to crimp growth prospects.

Now let’s get to the EURGBP free forex signals set up.

But before we do, you may be interested in finding about more about Forex Robots for your trading needs to read our guide today.

Free forex signals – buy EURGBP

free forex signals eurgbp forecast

Instrument: EUR/GBP

Order: BUY STOP

Entry price: 0.8602

Stop Loss: 0.8579

TP1: 0.8636

Recommended Risk: 1%
Risk / Reward Ratio: 1:1.5

Signal validity period: Good until cancelled

Looking to trade forex now? Invest at eToro!

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.