GBP has been gaining against USD more than EUR has been gaining against USD since the last press conference of the BOE, but there are two reasons why the divergence between EUR and GBP will wane out.
EUR/GBP took support in mid of Feb, and has been moving slightly upward in a channel shown in the graph below.
UK CPI has been moving down consistently for more than 5 months, so the inflation condition of the UK is similar to that of the EU. Moreover, PMIs have also been mixed just like those of EU area. So, overall economic scenario of the EU and the UK are not looking significantly different, and upcoming UK CPI and PMIs from the both will make the two currencies converge.
Our trading plan is to buy at current price and close the trade into two partial positions, one at TP1 -- confluence price level made by mid point of channel and mid band of Bollinger -- and the other at TP2. Exit plan in case of loss: If EUR/GBP moves down and two D1 candles close below the lower line of channel, close the trade in loss.
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