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
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
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