I could talk about how IRS see EURGBP at 0.77, or Forwards see 0.88, but I'll stick to the chart technicals and it seems rather bearish to flat at this point.We can see here the reaction since Carney has had his first press conference and the reaction has been impressive from the GBP, even if Carney wanted the exact opposite to occur. STIR futures now see a potential rate hike in 2015 Q1 and this is a vast shift from Q3 2016 that was previous. Becuase of this the GP has been in demand as gilt yi…
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EUR/GBP consolidation
The EUR/GBP has been relatively quiet since the end of January, after experiencing a large ramp-up to 0.88. From here we have found ourselves in a tight trading range which consists a lower limit of 0.8400 and a high around 0.88. As a tight trading range, the longer we wait the greater the breakout will be. Considering this, I expect this summer to be farily quiet and that we will see a continuation of this consolidation with a mild bearish tendency. As shown here, price is forming a fairly size…