We are currently seeing the fifth attempt for the GBP/EUR to break out to the upside in a week. This indicates a lot of resistance at this level. Resistance is a level where there are either sell orders in place to take profits or protect short position losses or where traders and automated trading have reached a decision on a certain level. It generally takes a news story or a significant piece of data to make the exchange rate move beyond that level. Alternatively, if all the sell orders are filled and the order book clears, this would also allow the price to go beyond the resistance.
As there is only Euro Employment Data out this morning it will either be a news story or a clearing of the order book that will allow the break out.
Overall it's a relatively quiet day for scheduled data with not much out from the States either.
With no big changes to the Omicron story over the weekend rates have had little change as they reopened after the weekend.
The GBP/USD rate had a nice rally on Friday evening before the close which has brought the rate to the top of the recent technical range and midway in the longer term range.
As ever we look forward to keeping you in the loop and look out for our next update.
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Today’s Economic Calendar
EUR: 10:00 Unemployment Rate