Forex forecast: EUR/GBP front running subsidy payment – Brenda Kelly

EUR/GBP has had a good run since bottoming out at 0.8333 on September 6. At the time of writing, the cross was trading just below 0.87 handle and is dangerously close to the cyclical high of 0.8725 (Aug 16 high).

Brenda Kelly, Independent Market Strategist, believes the EUR/GBP cross is front running the farm subsidy. The subsidy is due on the 1st October but is usually executed on the last day of September. Kelly thus sees a possibility of the pair revisiting 0.86-.85 levels. ‘Daily RSI is conveying a slightly bearish move”, she adds.

When quipped about Sterling, Kelly replies, “there is still a possibility of a short squeeze. Cable could revisit 1.3120”. While talking about USD/JPY, Brenda cites post Brexit low as the line in the sand. Kelly is joined by Tip TV’s Nick Batsford and Zak Mir.