With Brexit negotiations going slow and a lack of big macro data releases overnight, GPBEUR is continuing its range pattern. Traders are unfazed by the swirling political developments in Italy (yet).
Chartwise, GBPEUR is trapped in an ever-narrowing range. The trading range during Oct’17-Apr’18 was 1.11-1.15. Since April, the range has collapsed to 1.13-1.16.
A compressing range signals that an explosive trend lies ahead. The only question is: Which way? From the pattern of rising lows (accumulation), we’re tempted to say ‘up’. But nothing is ever certain in markets, especially as Brexit negotiations are still in progress.
We watch for a slew of UK macro data this week, some of which may show improvements over the first quarter.
Jackson has over 10 years experience as a financial analyst. Previously a director of Stockcube Research as head of Investors Intelligence providing market timing advice and research to some of the world largest institutions and hedge funds.
Expertise: Global macroeconomic investment strategy, statistical backtesting, asset allocation, and cross-asset research.
Jackson has a PhD in Finance from Durham University.