EUR/GBP Reverses Down at the 200 SMA, After BOE’s Haldane Sees the US Housing Market on Fire
EUR/GBP used to be bearish during Q1 of this year, after the EU-UK trade deal in December last year, This pair fell around 7.5 cents but in early April we saw a jump higher. Although, there was no follow through and since then this pair has been trading sideways.
But, the highs have been getting lower, which suggests that there is some selling pressure still. We decided to open a sell forex signal last friday when the price was retracing higher and today it seems like EUR/GBP ended the retrace at the 200 SMA (purple) on the H4 chart, which has turned into resistance it seems.
The 200 SMA provided solid resistance today
The comments from the Bank of England member Haldane are pushing the GBP higher, thus sending EUR.GBP lower, after he sees the housing market at a very great shape. Below are his comments, although most are on inequality.
BOE Haldane is speaking at an event on inequality and says:
- Inequality is being made worse by Covid crisis.
- US income inequality near highest since the 1920s
- UK income inequality is high by global standards.
- Inequality has hit young people disproportionately.
- Inequality now is more troubling in past 15 months.
- Early signs are encouraging for job market rebound
- Housing market in the UK is on fire
- Very likely that the housing boom will worsen pre-existing inequalities
- Not much the BOE can do on house inequality
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