EUR/GBP: a long-term "sell"
By Kira Iukhtenko
EUR/GBP keeps on consolidating in the short-term 0.8180/25 channel. From a bigger-picture standpoint we see that the cross trades in a bearish channel since last summer and is now testing the January-February 2014 lows to the downside.
In my view, EUR/GBP is a perfect long-term “sell” position. Divergence in the monetary policies of the ECB and the BoE give an advantage to the UK currency. What’s more, the pair is trading in a long-term bearish channel since 2009 and needs a break below 0.8060 (2010 low) to open the road to 0.7500 or even lower.
Chart. Weekly EUR/GBP
Chart. Daily EUR/GBP