• Firstly, the heavy offers which were seen last week above .8850 are presently not on the books. Maybe this is because the market has moved lower in the interim, I’m not sure.
• Secondly, the UK economy is still struggling compared with others and the BoEs quantitative easing program is still in place. Interest rates will stay low and government spending will stay high.
• The EUR/USD is trapped in a range and if it can break out we might see an explosion to the topside
• The weekly EUR/GBP chart shows a very strong resistance level around last weeks .8825/30 highs. There is both a bearish trendline and a 38.2% retracement around there. A clean break above should see a sharp move higher.
• The hourly EUR/GBP chart is showing signs of a bottoming formation.