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EUR/GBP Price Weekly Forecast: Focus Shifts to Key Data Release

EUR/GBP Price Weekly Forecast: Focus Shifts to Key Data Release

Forex, Commodities, and indices markets await this week's rate decisions, central bank members’ speeches, and highly important data for the US, the Eurozone, and the UK.

Key Events

On Monday, September 21, markets await the ECB president Lagarde’s speech and the Fed member Brainard’s speech.

On Tuesday, September 22, traders will tune in the Fed’s members Kaplan, Williams, and Evan’s speeches and the Fed chairman Powell’s testimony before the US Congress.

On Wednesday, September 23, markets will find out about the RBNZ rate’s decision, the Eurozone, the UK, and the US flash (primary) PMI data for September. The Fed Chairman will continue its testimony before Congress, and the change in the US oil stockpile levels will be released. By the end of the day, investors expect the Fed members Evan, and Quarles's speeches.

On Thursday, September 24, eyes will be on the Bank of Japan monetary policy minutes, the SNB rate decision, the ECB economic bulletin, the German IFO business climate data, the US initial jobless claims, and the Bank of England governor’s Bailey speech.

On Friday, September 25, Markets will follow the European council's special meeting, the US durable goods data for August, and the Fed Williams speech.

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EUR/GBP Daily Price Chart (June 19 - September 20, 2020)

On September 11, EUR/GBP climbed to a near six-month high at 0.9290. Last week, the price retreated to a lower trading zone 0.9189 – 0.9014 then closed a weekly candlestick in the red with a 1.0% loss.

A daily close above the high end of the trading zone ie, above 0.9189 signals that bulls may try to re-test the March 19 high at 0.9498.

On the other hand, a daily close below the low end of the zone ie, below 0.9014 may encourage bears to press towards the monthly support level at 0.8890 ( the July 2019 low).

EUR/GBP Four Hour Price Chart (August 27- September 20, 2020)

On September 16, EUR/GBP traded below the bullish trendline support originated from the September 3 low at 0.8864 and changed the price trend from bullish to sideways.

Therefore, a break above 0.9206 may trigger a rally towards the September 11 high at 0.9290, while a break below the 0.9100 handle could press the pair towards0.9029. As such, the support and resistance levels underlined on the chart should be kept in focus.

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