Sterling (GBP) – GBP / USD, EUR / GBP and GBP / CAD Price and analysis:
- GBP / USD is stuck in the two-point trading range for now.
- EUR / GBP for the Fibonacci retracement.
- The GBP / CAD pair examines oil and jobs in Canada.
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Every trader needs a game plan
Prime Minister Boris Johnson was admitted to hospital on Sunday with persistent symptoms of coronavirus and while still ruling the country from his hospital bed, any further escalation in his condition could see Foreign Minister Dominic Raab take action in hand. Traders should closely monitor the PM’s situation as any change in direction, even in the short term, could affect the UK markets. In the data space, a light calendar with pre-locking versions. U.S. and Canadian job data released on Thursday should be watched closely, however, while the OPEC + virtual meeting is discussed later in the week. The GBP / CAD could turn out to be particularly volatile at the end of the week and could stop the recent spate of lows if Canadian jobs or OPEC + oil news disappoint.
DailyFX economic calendar
GBP / USD stuck in short-term range
Cable returns to last Friday’s low and appears to have implemented short-term support just above 1.2200. Price action may be limited by last Friday’s high at 1.2400, while above the 1.2470-1.2488 area it can be difficult to break into current market conditions.
GBP / USD Daily Price Graph (August 2019 – April 6, 2020)
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EUR / GBP testing Fibonacci retracement
A strong sale from the March 19 peak at 0.9500 saw the EUR / GBP test the Fibonacci retracement level at 61.8% at 0.8747 twice. For the pair to drop lower, this level must be permanently broken and closed below to open the way for 50-dma at 0.8735 and 200-dma at 0.8691. Note that a bullish “golden cross” was made last week, which could indicate an increase in prices in the short and medium term.
EUR / GBP Daily Price Graph (September 2019 – April 6, 2020)
Although the markets remain volatile and difficult to trade, now is a good time to go back and refresh a variety of essential trading skills. DailyFX strategist Paul Robinson has put together a series of videos –How to become a better trader– which will help traders of all skill levels and skills.
What is your opinion on Pound sterling (GBP)– bullish or bearish ?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @ nickcawley1.