Both GBP and EUR Under Pressure of Breaking to Lower Levels

The GBP and the EUR are now presenting bearish characteristics which is why it may be a good time to look at both GBPUSD and EURUSD for some opportunities.

Lack of EU and UK Trade Progress Affects the Strength of the Pound

The EU-UK Trade talks have been the talk of the week. The focus of the trade talks are centered around future governance of both states, criminal judicial cooperation, and fisheries. A new session of trade talks will be able to see if there is any progress made in any of these aspects. Should there not be any progress with these aspects, the risk sentiment of the currency will go lower.

As it is, GBPUSD is already playing at the 1.22935 level. A strong downward movement may result in a breakout of this range movement.

Pressure On the Side of the EUR

EUR also seems to be in trouble at the moment. A report on the latest economic conditions of the EU that comes from Federal Reserve Chair Jay Powell may result in an even further drop in price.

At the moment, there are some indicators that the demand of safe havens will continue to rise following some of the economic conditions of the global market plus the concerns of second wave pandemics. Investors may flock to the USD pushing down the two aforementioned currencies.

Risk Disclaimer:

Information on this page are solely for educational purposes only and is not in any way a recommendation to buy or sell certain assets. You should do your own thorough research before investing in any type of asset. Learn to Trade does not fully guarantee that this information is free from errors or misstatements. It also does not guarantee that the information is completely timely. Investing in the Foreign Exchange Market involves a great deal of risk which may result in the loss of a portion or your full investment. All risks, losses and costs associated with investing, including total loss of principal and emotional distress, are your responsibility.