Welcome trading legends,
In this blog, we’ll be trading the EUR/GBP asset using the signals provided by the Tools Trades website and the IQ Option broker. Be sure to stick to the end of the video as I’ll be sharing a special promo code with you.
Allow me to explain why I’m trading this particular asset.
The euro (EUR) to Pound (GBP) is a popular cross currency pair representing the UK and Eurozone economies. It is referred to as a ‘cross’ currency pair as it represents a cross of the euro to the British pound directly and does not involve converting to the US dollar.
The pair are widely traded and known for being less volatile in comparison to other minor pairs due to the interconnectedness of the two economies and the correlation of the currencies relative to the USD concerning global economic events.
The Sterling has strengthened against the US dollar, Japanese Yen and the Euro since Tuesday as the Governor of the Bank of England (BoE), Andrew Bailey, stated that there were a lot of issues with negative interest rates with one of those being that it could hurt banks.
The implementation of negative interest rates is often viewed as a last resort, something the UK is hoping to avoid as it remains optimistic of an economic recovery, spurred on by the great progress in administering Covid-19 vaccines.
The market reacted favorably to the comments as risk appetite looks to have improved for the Pound, which traded to its highest levels since the latter part of last year (lower EUR/GBP levels).
The recent sell-off has EUR/GBP trading near the 0.8860 level of support which has been effective in holding the market up since June 2020 and represents a key level for the pair. The MACD indicator shows that momentum may continue and should that materialize, it would bring the next level of support (0.8830) into focus.
Failure to break and close below this key level may interest bulls as the market has reversed off the 0.8860 level in the past. A move higher could see the pair trading towards the nearest level of resistance (previous support) at 0.8994. Further bullish momentum could see an approach towards the psychological level of 0.9000 and potentially even the 0.9090 level of resistance.
As you can see the signals from the Tools Trades website have worked!
The promo code that you see on the screen will give you more trading signals if you use them on the Tools Trades website.
Be sure to watch my other videos on the channel and read the blog page so you learn more. If you want more videos like this be sure to like and subscribe. Thanks for watching and
May the Forex be with you.
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