Chart of The Day EURGBP

<h2><span>Chart of the Day EURGBP</span></h2>
<p><strong>EURGBP  Potential Reversal Zone – Probable Price Path</strong></p>
<p><span><strong>Month-end flows have likely been a dominant force driving markets in the last 24 hours</strong>. The S&amp;P500 recorded its best quarterly performance in more than 20 years, up 19%, while the Nasdaq registered a 30% gain. Ironically, the strong gains have come as bankruptcy filings in the US are running at their fastest pace since 2013 (approaching 3,500 year-to-date), making the strong gain in equities one of the most hated rallies in recent history for those focused on the poor economic and earnings backdrop. On the COVID19 front there is little to cheer about. US daily case numbers have fallen for the second day running, but the rolling 7-day average continues to increase. Outbreaks in South and West are encouraging other States to scale back reopening plans, including halts to allow indoor dining. US Health expert Fauci said that he was concerned about the trend in US case numbers and that he wouldn’t be surprised if the number reached 100,000 per day (up from over 40,000), alongside a “disturbing” number of deaths. Yesterday, in Australia the state government of Victoria imposed a 4-week lockdown in 10 Melbourne postcodes in response to an outbreak of community transmission there.</span></p>
<p><span><strong>EUR:</strong> </span><span>The economic data of the euro zone sees improvement, and short-term support may continue to support the performance of the euro. The market continues to pay attention to whether the epidemic will turn around and deteriorate. The German Parliament passed the 130 billion euro economic stimulus plan. German Chancellor Angela Merkel said that he would fully support the EU’s recovery fund plan, but admitted that there is still much resistance. European Central Bank President Lagarde said that the central bank will continue to estimate whether various policies are implemented in proportion to whether they are in proportion to the risks of price stability</span></p>
<p><span><strong>GBP:</strong> </span><span>The city of Leicester in the middle of the United Kingdom extended the closure measures, worrying about the impact of the epidemic on the United Kingdom, Health Minister Hancock  announced that due to the increase in the number of newly diagnosed local Leicester, the local blockade will be extended until July 18. Prime Minister Johnson delivered a speech yesterday outlining an economic recovery plan. Of most note was EU negotiator Barnier striking somewhat positive tone with respect to the EU/UK trade negotiations</span></p>
<p><img class="aligncenter size-full wp-image-46287" src="http://blog.tickmill.com/wp-content/uploads/2020/07/Screenshot-2020-07-01-09.34.17.png" alt="" width="2119" height="1203" srcset="https://blog.tickmill.com/wp-content/uploads/2020/07/Screenshot-2020-07-01-09.34.17.png 2119w, https://blog.tickmill.com/wp-content/uploads/2020/07/Screenshot-2020-07-01-09.34.17-300×170.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/07/Screenshot-2020-07-01-09.34.17-1024×581.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/07/Screenshot-2020-07-01-09.34.17-768×436.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/07/Screenshot-2020-07-01-09.34.17-1536×872.png 1536w, https://blog.tickmill.com/wp-content/uploads/2020/07/Screenshot-2020-07-01-09.34.17-2048×1163.png 2048w" sizes="(max-width: 2119px) 100vw, 2119px" /></p>
<p><span><strong>From a technical and trading perspective,</strong> the EURGBP has tested the pivotal 50% retracement zone at the .9100 level and price met significant supply which translated into key reversal pattern printing yesterday, which flipped the daily chart bearish as per the near term VWAP. Bearish exposure should be rewarded on a breach of yesterday’s lows with bears initially targeting a test of interim trend support back towards .9000, a failure to attract sufficient bids here will open a deeper corrective phase to .8870</span></p>
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