Forex Flash: What to do with EUR/GBP – Commerzbank VS. Danske Bank

[John Starks]

Finally do both banks agree on a trading strategy: short EUR/GBP. The Copenhagen based bank, Danske Bank, says in its daily technical report to “short at 0.8378 for a 0.8067 objective, stop at 0.8253", while Commerzbank suggests to do “shorts from 0.8275 were profit stopped 0.8205. Resell 0.8215, 0.8230, stops 0.8285.”

Yesterday it was announced that the UK is officially in recession after its quarterly GDP growth rate registered a second consecutive negative reading (-0.3%, followed by today's -0.2%). UK YoY GDP growth did worse than expected, reaching 0.0% while the 3 month change of the Index of Services came in line with forecasts at 0.2%. The eurozone's consumer, economic and industrial confidence indices did worse than expected with scores of -19.9, 92.8 and -9.0, respectively.

The pair is currently trading at 0.8164, down by 0.18%.