Sterling (GBP) – GBP/USD, EUR/GBP and GBP/CAD Prices and Analysis:
- GBP/USD[1] stuck in two-point trading range for now.
- EUR/GBP[2] respecting Fibonacci retracement.
- GBP/CAD[3] looking at oil[4] and Canadian jobs release.
Prime Minister Boris Johnson was admitted to hospital on Sunday with ongoing coronavirus symptoms and while he is still leading the country from his hospital bed, any further escalations of his condition could see the Foreign Secretary, Dominic Raab, take charge. Traders need to follow the PM’s condition closely as any change in leadership, even in the short-term, could affect UK markets. In the data space, a light calendar with some pre-lockdown releases. US and Canadian jobs data out on Thursday however need to be closely watched, while the virtual OPEC+ meeting is mooted for later in the week. GBP[5]/CAD[6] may prove to be particularly volatile at the end of the week and may arrest the recent set of lower highs if Canadian jobs or OPEC+ oil news disappoints.
GBP/USD Stuck in a Short-Term Range
Cable is back off last Friday’s lows and looks to have set-up short-term support just above 1.2200. Price action may be confined by last Friday’s high at 1.2400, while above here the 1.2470-1.2488 zone may be difficult to break through in current market conditions.
GBP/USD Daily Price Chart (August 2019 – April 6, 2020)
EUR/GBP Testing Fibonacci Retracement
A sharp sell-off from the March 19 high at 0.9500 has seen EUR[8]/GBP test the 61.8% Fibonacci retracement level at 0.8747 twice. For the pair to move lower, this level needs to be broken conclusively and closed below to open the way to the 50-dma at 0.8735 and the 200-dma
