Setback likely for EURGBP after demand stalls
Early demand on Thursday extended the previous days renewal of the upside for EURGBP. But the market lacked momentum short of £0.7900 and, although the subsequent setback found buyers at higher levels, minor net downside was posted.
This changed direction for the cross for a third day in a row and does not provide strong signals. Nonetheless it is the failure to attract significant buying, despite a rising Keltner channel, that gives the immediate tone a negative bias.
Management and risk description
A move to £0.7794 means the stop can be lowered to break even or better.
Entry: Sell in £0.7820/25 area and any rally to £0.7834.
Stop: £0.7860 bid.
Target: £0.7794 and £0.7774.
Time horizon: Intraday. London 1600 hours (1300 GMT) on Friday June 10
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