EURGBP BUY IDEA

16 Eyl 2020

After piercing through a resistance area last week, it is currently testing this level which is now a support. The level is in confluence with the fibonacci retracement at the 0.382 to 0.5 levels. The pair is expected to complete last week's impulse. A higher target remains in sight in the medium term. The 💶 has faced massive buying of long positions by speculators in the past few months. It's hard to tell whether banks are in profit taking mode before a deeper retracement on the EURUSD or accumulation mode to go after the 1.25 target consensus by analysts for 2020-2021. The GBP is under a lot of pressure with Brexit and the impact covid on the 🇬🇧 economy weighing heavily on the Cable.
Looking at the pair from both fundamental and technical perspectives, I will be looking for a buying opportunity.