GBP/USD, EURGBP and FTSE 100 – Prices, Charts and Analysis:
- EU/UK trade talks may weigh on the British Pound is the status-quo remains.
- US-China relations continue to deteriorate leaving risk assets exposed.
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A week full of risk events and important data releases will increase market volatility across a range of assets, especially when viewed against a turbulent and fractious political and economic backdrop. Three central bank policy meetings – RBA, BoC and ECB – and US non-farm payrolls will compete for headlines with ongoing US-China headlines and EU-UK trade talks. Risk markets are starting to look fully priced and this could weigh on Sterling and the FTSE 100.
GBP/USD continues to make a short-term pattern of higher lows and higher highs but last week’s run in the pair was primarily due to weakness in the US dollar ahead of month-end portfolio rebalancing. Resistance around the 61.8% Fibonacci retracement at 1.2517 and support likely around 50% Fib retracement at 1.2306. EU-UK trade talk headlines need to be watched closely.
GBP/USD Daily Price Chart (December 2019 – June 1, 2020)
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EUR/GBP is fading lower after the pair broke range resistance in mid-May. Fibonacci retracement numbers also in play with short-term resistance around 38.2% Fib at 0.9035, ahead of 0.9055, and support at 50% Fib 0.8891.
EUR/GBP Daily Price Chart (December 2019 – June 1, 2020)
FTSE 100 is facing resistance from another Fibonacci level as well as the bottom of the gap made between March 6 and March 9 between 6,233 and 6,239. A cluster of recent lows between 6,000 and 6,036 and the 20-dma at 6,006 provide the first area of support.
FTSE 100 Daily Price Chart (December 2019 – June 1, 2020)
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