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EUR/GBP forex signal - German Ifo business climate - 24 Apr 2018

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Signal Details
Entry Price: 
0.8787
Take Profit: 
0.8855
Stop Loss: 
0.8752
Direction: 
Buy
Result: 
Profit
How we trade
5/5 of 5 ratings

The German Ifo business climate data will be released today by the Ifo institute in Germany at 0800 GMT. According to the economists polled, business climate is expected to have improved with the index expected to rise to 104.7 from 103.2 last month.

The increase in the business climate comes after the index had steadily increased to 117.6 levels few months ago. This came at a time when business confidence in Germany was at an all time high. The increase coincided with increased activity across the manufacturing and services sectors during the period. The increased activity led to higher GDP growth as well during the final months of 2017.

In recent few months, business climate including sentiment had declined. The decline came mostly on account of the renewed uncertainty surrounding global trade deals.

The exchange rate of the euro currency was also seen starting to hurt the export sector as exports declined in recent months. Last month's data showed that exports from Germany declined strongly leading to a narrowing in the trade surplus data.

The Ifo's business climate data will be covering the month of May and an uptick is expected by economists on improvements in the global trade.

Based on the above, today's forex trading signal is EURGBP. The currency pair was seen consolidating following the strong gains posted in the previous few weeks of the currency pair posting strong gains. In the short term, the bullish momentum is expected to maintain the upside bias.

Therefore, we are looking to be long on EURGBP with the entry level at 0.8787 targeting 0.8855. Stops are expected around 0.8752. The consolidation seen on the intraday charts is expected to see the EURGBP resume the bullish momentum and close higher on the day.

forex trading signal eurgbp 24 apr 2018

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.