Euro weakened after GDP data revealed the economy’s slowdown was accelerating. Q4 German GDP fell -2.1% vs. -1.8% forecast and the Euro zone GDP dropped -1.5% vs. -1.3%. Sterling rebounded during the day briefly touching 1.46 before settling back into the US close. Market views are mixed with some participants covering shorts ahead of the G7 on concerns the Pounds weakness may be mentioned.
Technical Outlook:
EURO R1: 1.2850 S1:1.2670
R2: 1.2880 S2:1.2650
Chart pattern hints a small downward correction for the day . Trading range for the day is expected between 1.2680-1.2840 levels for the day. Currency is seen trading below the moving average giving bearish crossover. Stochastic and momentum are seen trending down supporting the outlook.
GBP R1: 1.4360 S1: 1. 4110
R2: 1.4380 S2: 1. 4080
Chart pattern signals a mixed to bearish movement for the day. Trading range is expected between 1.4120-1.4350 levels for the day. Currency is trading below the moving average and Momentum is seen flat and stochastic are seen trending down giving bearish crossover but caution is given by parabolic.
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