Updated: Jun 27, 2020
EURGBP on the Macro Currency Strength Meter start to converge
The LogicStrategy™ most recent results have shown how the GBP has started to lose some strength dropping by 4 points while the EURO as started to really appreciate accelerating from -32 to -23 gaining nearly 10 points. However, both countries are still below 0 suggesting slow growth in both economies. If we see EURO breach above 0 we could start to see some LONG opportunities before Brexit.
"Germany and France have agreed a proposal for a common euro zone budget to be used to reward countries that successfully implement economic reforms and to finance strategic investments" - Reuters
The new proposal by Europe's largest economies suggest economic reform in the Euro zone hopefully stabilising the smaller EU economies.
The EURGBP is currently heavily discounted in favour of the EURO. Not only has it reached a weekly support, in the past day it has started to long from this buy zone as investors start to purchase the EURO and sell the GBP.
What retail traders can now look out for is the price to stall in this region before Brexit. In future LogicStrategy™ results depending on how much the GBP and EURO converge we could see a potential trade. Keep an eye out on this pair in the following month. We will update you further on the potential.