EUR versus GBP
Fundamentals:
When it comes to the economical balance sheet, EURO is much stronger than the UK economy. Post-Brexit, the UK is heavily reliant on FDI to fund its balance sheet, which is at a deficit. Investors are looking for yield and the UK may not be able to deliver as strongly relative to the Euro. Euro has a lot of storage of money abroad, which can return conveniently to fund its current account deficit. This is not the case with the UK.
Techincals:
The technical picture seems to be shaping up to support the fundamental picture.
Daily Low interest in volume going down.
Daily oversold market.
Daily RSI at extremes
Breaking out of a daily pennant
Crack and Snap on May 11, 2023
Weekly uHd
When it comes to the economical balance sheet, EURO is much stronger than the UK economy. Post-Brexit, the UK is heavily reliant on FDI to fund its balance sheet, which is at a deficit. Investors are looking for yield and the UK may not be able to deliver as strongly relative to the Euro. Euro has a lot of storage of money abroad, which can return conveniently to fund its current account deficit. This is not the case with the UK.
Techincals:
The technical picture seems to be shaping up to support the fundamental picture.
Daily Low interest in volume going down.
Daily oversold market.
Daily RSI at extremes
Breaking out of a daily pennant
Crack and Snap on May 11, 2023
Weekly uHd
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