Massive Collapse In Both Pairs The EUR/USD And The GBP/USD

EUR/GBP Cross Pair Is Likely To Remain The Latest Recovery

Although a lot of macroeconomic statistics were released yesterday, markets were unaffected as players focused more on Gazprom's decision to cut off gas supplies to Europe. According to the official statement, there was a breakdown, so there is a need for additional repairs. This threatens Europe with shutdowns of enterprises and massive power outages.

Unsurprisingly, the incident caused a massive collapse in both EUR/USD and GBP/USD. The situation only stabilized after the release of retail sales data on Europe, which declined by -0.9%. For future price movements, much will depend both on the statements of officials and the press service of Gazprom. Nevertheless, euro has little chance of increasing, and there is certainly no hopes of rising above parity. On the contrary, some statements may even contribute to another decline below 0.99, followed by a rebound.

Retail sales (Europe):

Exchange Rates 06.09.2022 analysis

EUR/USD failed to break through the lower boundary of the range 0.9900/1.0050. As a result, there was an increase in the volume of long positions, which led to a rebound in prices. It can be assumed that, despite the prevailing downward sentiment among speculators, the market is still developing within the base of the medium-term trend. The best action to this is to work a rebound or breakdown relative to the given boundaries. In case of a breakdown, wait for a strong signal in the daily (D1) timeframe.

GBP/USD continued to fall and came close to the 2020 low, where a local reduction in the volume of short positions occurred, which eventually led to a rollback. To prolong the main trend, it is necessary to keep the price below 1.1410 in the four-hour timeframe.

 

 

Relevance up to 19:00 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Read more: https://www.instaforex.eu/forex_analysis/320883

EUR/GBP Cross Pair Is Likely To Remain The Latest Recovery

InstaForex Analysis

Instant Trading EU Ltd. is the CFD broker regulated by CySec with license number 266/15.

 

Besides CySEC, Instant Trading EU Ltd. is also supervised by the Czech National Bank (CNB), the Slovak National Bank (SNB), and the Polish Financial Supervision Authority (KNF). Consequently, InstaForex has branches in the Czech Republic, Slovakia, and Poland, where it provides support in local languages. InstaForex is a member of the Investor Compensation Fund (I.C.F) which is an additional security for the client's funds. Besides, the broker ensures the Negative balance protection. So, the reliability and trustworthiness of this broker raise no doubts.

 

Instaforex offers access to more than 2,500 instruments (Stocks CFDs, ETFs, IPOs, Indices, Commodities, Forex, Cryptocurrencies, US Synthetic Stocks) and the MT4 and MT5 platforms, trading accounts in EUR, USD, PLN, CZK, GBP.

 

More information at: www.instaforex.eu

Follow InstaForex on:

Twitter | LinkedIn