Blake Morrow’s Chart of The Day – Feb 24th 2021

EURGBP

The Sterling has been on a rip higher the last few weeks and the EURGBP has slumped to levels not seen since early 2020 as a result. However, we are at a 5+yr trend line today as we are at the .8600 level. Even though in the last several weeks I have been very bullish the GBP overall (on different crosses) the risk of a bounce in the EURGBP may be high as the RSI is at levels not seen since 2017 and very oversold. In addition, the US equity markets may be ready to consolidate gains or pullback some, which the GBP tends to underperform in that environment. Bears in the EURGBP should be careful near term. I do expect this .8600 level to eventually give way, but near term may be another story.