EURGBP SELL IDEA ANALYSIS

22 февр.

On the weekly Timeframe we have price clearing the Previous week High.
Still on the weekly timeframe we have price trading at a bearish breaker.

Boiilng down in to the H1 Timeframe.
1. We have a change in the state of delivery (CISD) thereby indicating bearishness.
2. We have a run on stops/stop raid inside the weekly bearish breaker.
3. We have price reacting off the H1 OrderBlock (OB-) at London Open
Alternative scenario: We can have the H1 OrderBlock fail to hold price down for lower prices and can break above it therefore advancing higher.

Fundamental Outlook:
Data release for sterling on Thursday was February's preliminary S&P Global/CIPS Composite Purchasing Managers' Index (PMI), which spans services and manufacturing firms, which rose to 53.3, the highest in nine months.


S&P's data statement also noted that inflationary pressures remained elevated, and that "the rate of input price inflation edged up to its strongest since August 2023, largely due to rising salaries in the service sector".

Analysts said that meant the Bank of England could keep interest rates at their current level for longer. This proves more short term strength for the GBP.