GBP is terrible, but EUR is even worse

How to work with this article?

Basic arguments

The production in the EU shows a sharp decline, and the economy slows down. Investors get rid of GBP, and, surprisingly, of EUR as well. They prefer safe-haven assets against the background of growing volatility... The probability of hard Brexit is also increased, which will harm EUR.

Technical arguments

The trend is clearly directed downwards. Recent correction is fading out and getting back to the trend.

Big traders positions

Picture 1

Picture 1. The price chart of EURGBP and the indicator of big traders for the period of 01.09.2019 - 01.10.2019.

As we can see in picture 1, the trends are directed significantly downwards, which reward GBP because the UK now is more attractive economically than the Eurozone for now.

To sum it up

Investments in such currency assets as EURGBP carry the additional risk. The total currency situation at this moment indicates the recession in the EU and the increased volatility of GBP. So, now, the majority of factors suggest that the asset has a downward trend. At this moment, the best available strategy is to keep a moderate position with 60% of opened downwards trades and 40% upwards trades.

We recommend the following indicators for effective trades opening:

• SMA (Moving Average)
• RSI