UKOIL (Brent Oil)
Yesterday Brent has started a bullish correction from strong support level $70.40. Another important bullish sign is a proximity to the 200-period Moving Average. It can support Oil prices and help it win back losses caused by bearish EIA data. So we buy UKOIL with the first target at the upper channel border. And then if it breaks the border we will hold the long position to $75 resistance level.
While British Pound decreasing on pessimistic expectations about no-deal Brexit, oversold European currency tries to return to previous positions. So EURGBP pair bounced from the lower border of the bull channel. At the same time price has bounced from the 23.6% Fibo level and has almost made a bullish engulfing.
No-deal Brexit plan will be published today. It can provoke a volatility hike on pairs with GBP. Also, we are waiting for the release of the European Consumer Price Index. Experts forecast that year-to-year data will stay the same, but month-to-month metrics will be worse than June values.
We can try to gamble on supposed volatility. Or wait out for volatility and continue to buy at the lower border of the channel with the profit target 0.9050.
So our targets for:
UKOIL (Brent Oil) – $75
EURGBP – 0.9050