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GBP: Tuesday's jobs data should weigh – ING

EUR/GBP is back below 0.88 again as GBP/USD seems to find good demand under 1.31, ING’s FX analyst Chris Turner notes.

🔗 Source

💡 DMK Insight

EUR/GBP slipping below 0.88 is a signal traders need to pay attention to right now. With GBP/USD holding firm above 1.31, it suggests a potential shift in sentiment favoring the pound. This could be driven by recent economic data or central bank signals that are making GBP more attractive. If EUR/GBP continues to weaken, it might indicate that traders are positioning for further GBP strength, especially if we see a break below key support levels. Watch for any upcoming economic releases or comments from the Bank of England that could influence this dynamic. On the flip side, if EUR/GBP rebounds above 0.88, it could signal a short-term correction, so keep an eye on that level for potential reversals. Overall, the interplay between these pairs is critical, and monitoring the 1.31 level in GBP/USD will be essential for gauging the pound’s strength against the euro.

📮 Takeaway

Watch for EUR/GBP’s movement around 0.88; a sustained break could signal further GBP strength, especially if GBP/USD holds above 1.31.

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