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EUR/GBP Signal - Eurozone flash PMI - 24 Mar 2017

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Entry Price: 
Close Price: 
Expiry Time: 
21:00 GMT
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Eurozone flash PMI's will be coming out later today and the data will see the flash PMI numbers for both manufacturing and services across Germany, France, Italy and for the eurozone as a whole. Economists polled are expecting to see no major changes to the flash PMI numbers from the previous month. The data today is likely to bring about some volatility in the euro cross currencies, which brings us to focus on the EURGBP currency pair.

EURGBP has retraced most of the declines in the currency pair from late October through December 2016. After hitting support level near 0.8300, the EURGBP has posted strong gains, initially rallying towards 0.8850 followed by another minor leg to the upside at 0.8778. The overall long term trend in EURGBP is still poised to the downside which could see further declines in the days to come. For EURGBP, the focus will be on the upcoming Brexit negotiations. Earlier this week, the British government announced that it will formally trigger Article 50 on March 29th.

For the eurozone there are no immediate risks to the common currency with the recently concluded Dutch elections seeing the status quo being maintained. Therefore, in terms of risks, the upcoming Brexit talks will be likely to be the main catalyst for EURGBP. On the economic front, UK's retail sales gained 1.4%, which was a rebound, higher than the expected 0.4%. The data added to the bullish trend in the GBP as a result.

In terms of the binary options trading signal, EURGBP CALL options are ideal with the price target near 0.8620. Although this is counter trend to the long term bearish declines, the retracement is likely to come by as price action is pointing to a retest of the resistance level formed near 0.8658. Adding to the bullish trend is also the falling wedge pattern indicating an upside rally in prices.

Therefore for today's binary options trade look to buy daily CALL options above 0.8620 for an end of day 21:000 GMT expiry time.

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. 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. All risks and coasts associated with online trading are your responsibility.