Inter-day Forex Analysis – Daily Charts – February 03, 2017

EURGBP – Daily Chart

As suggested in our last inter-day chart analysis, the EURGBP has moved off the bearish consolidation resistance and has been bearish. The moving averages are moving sideways, suggesting that price could continue within the consolidation. Shorting opportunities could exist around the consolidation resistance area and if the EURGBP moves below the horizontal support at 0.8350. Trading opportunities could exist around the other identified horizontal levels.

The British Prime Minister has announced that Article 50 will be triggered by the end of March 2017. Most economists did believe that sterling would continue to weaken long-term but there now exists more optimism for the British pound. British Prime Minister Theresa May has provided Brexit negotiation details and announced what deal the UK government would like as they leave the EU. This has given strength to the GBP

GBPUSD – Daily Chart

Price continues to move within the horizontal channel at 1.2000-1.2725 (as suggested in our last inter-day chart analysis).  The moving averages are tight and moving sideways – confirming the current market indecision. Trading opportunities could exist around the range support and resistance areas and if the GBPUSD moves out of the range (break-out trade).

The British Prime Minister has announced that Article 50 will be triggered by the end of March 2017. Most economists did believe that sterling would continue to weaken long-term but there now exists more optimism for the British pound. British Prime Minister Theresa May has provided Brexit negotiation details and announced what deal the UK government would like as they leave the EU. This has given strength to the GBP. The US Federal Reserve have increased interest rates to 0.75%. The US Dollar could continue to strengthen long-term, as further rate hikes are expected.

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