EURGBP

The EUR/GBP is setting up for a good reversal as we have an inverted head and shoulder pattern technical setup. But what makes this setup so appealing at the moment is the market is very bearish in the Eurozone and more bullish (relatively) the UK economy (as a whole). Rightfully so as the Eurozone faces a lot of growth issues and disinflationary pressure, while the UK prospects look a little better. However, this is very well known, and the market has discounted this from the end of 2023 and the beginning of 2024, and one of the reasons we have consolidated lower since the middle of January. However, what if things change? How about UK inflation pressures continue to subside? Or perhaps the UK stumbles upon some political risks?



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