The EUR/GBP pair continues to exhibit selling bais since European session as it’s prices fell from 0.8900 level to 0.8943 level on the back of weaker Euro and stronger GBP. The risk-off market sentiment was further bolstered by Trump’s action to impose restrictions on the use of China technology Huawei. In the meantime, the U.S. started an investigation about the origin of COVID-19, which also weighed on the market risk sentiment.
The very harsh word from both sides, investors turned to the safe-haven dollar, which kept the EUR/USD currency pair under pressure. This eventually also puts the EUR/GBP pair under selling pressure. Whereas, The U.S. Dollar Index that tracks the greenback against a basket of other currencies was up 0.19% to 199.593 by 11:44 PM ET (4:44 AM GMT).
At the coronavirus front, the number of reported coronavirus cases increased to 177,212, with a total of 8,174 deaths reported so far. Whereas, the claims rose by 460 in Germany on Friday against yesterday’s +745 while the death toll rose by 27, as per the German disease and epidemic control center, Robert Koch Institute (RKI).
For now, the EUR/GBP pair is holding bellow 0.8960 level after violating the upward trendline. Now the pair is also crossing below 50 EMA, which suggests chances of selling trend in the EUR/GBP pair. On the lower side, we may see the European cross pair heading south to test the next support area of 0.8900.
Entry Price – Sell 0.89454
Stop Loss – 0.89854
Take Profit – 0.88954
Risk to Reward – 1.25
Profit & Loss Per Standard Lot = -$486.8/ +$608.5
Profit & Loss Per Micro Lot = -$48.8/ +$60.8