16 Jul 2013
EUR/GBP capped ahead of 0.8700
FXstreet.com (London) - EUR/GBP has been capped at 0.8687 following the release of UK and EZ data.
EUR/GBP broke the resistance zone post disappointing UK CPI and rallied towards 0.8700. Since, the pair has actually ducked away post EZ CPI that was inline, oscillating above 0.8670 at the top of the bullish channel formed in May. For the UK, there were a number of second tier releases but key was CPI. Core y/y (Jun) was in line while non-core was 2.9% vrs 3.0% consensus and 2.7% previous. EZ CPI was in line, 1.6% and 1.2% Core (Jun) y/y, 0.1% m/m Jun. At the same time, we got the ZEW Survey for Germany offering a positive reading on the current situation (Jul) 10.6 vrs 9.0 consensus and 8.6 previous. While EZ ZEW came in 32.8 vrs 31.8, so positive there too.
EUR/GBP looks to April high
Alex Rudolph, Senior Technical Analyst at Commerzbank said “While the market continues to hold over the 55 day ma at 0.8526 and the range lows at 0.8570, an upside bias is preserved. Initial support is the top of the previous range at 0.8597”. He said the close above the 0.8636 April high should act as a break point to the 0.8793/0.8814 highs seen earlier in the year. Danske Bank Technicals sight resistances 0.8703, 0.8719, 0.8745 and 0.8793. Support comes as 0.8631, 0.8610, 0.8575.
EUR/GBP broke the resistance zone post disappointing UK CPI and rallied towards 0.8700. Since, the pair has actually ducked away post EZ CPI that was inline, oscillating above 0.8670 at the top of the bullish channel formed in May. For the UK, there were a number of second tier releases but key was CPI. Core y/y (Jun) was in line while non-core was 2.9% vrs 3.0% consensus and 2.7% previous. EZ CPI was in line, 1.6% and 1.2% Core (Jun) y/y, 0.1% m/m Jun. At the same time, we got the ZEW Survey for Germany offering a positive reading on the current situation (Jul) 10.6 vrs 9.0 consensus and 8.6 previous. While EZ ZEW came in 32.8 vrs 31.8, so positive there too.
EUR/GBP looks to April high
Alex Rudolph, Senior Technical Analyst at Commerzbank said “While the market continues to hold over the 55 day ma at 0.8526 and the range lows at 0.8570, an upside bias is preserved. Initial support is the top of the previous range at 0.8597”. He said the close above the 0.8636 April high should act as a break point to the 0.8793/0.8814 highs seen earlier in the year. Danske Bank Technicals sight resistances 0.8703, 0.8719, 0.8745 and 0.8793. Support comes as 0.8631, 0.8610, 0.8575.