5 Sep 2013
EUR/GBP in fresh 4-month lows
FXstreet.com (Edinburgh) -The bearishness surrounding the EUR/GBP is now gathering steam, pushing the cross to challenge levels last seen during May, around 0.8400 the figure.
EUR/GBP weaker after ECB
The unexpectedly more dovish tone from ECB’s Draghi in his usual press conference today triggered a sharp sell-off in the single currency, accelerating the decline in the cross. In another note, the BoE left its policy stance unchanged as widely expected, boosting the sterling and thus collaborating with the downside. According to analysts at RBS, the cross “failed to break above the 76.4% retracement and the market ended up selling off and closing lower than the previous month’s opening price. This is a negative signal. For that reason, we look for a move lower to test 0.8410 and possibly 0.8370 as the primary targets”.
EUR/GBP significant levels
At the moment the cross is losing 0.40% at 0.8417 and a breach below 0.8398 (low Apr.26) would target 0.8364 (61.8% of 0.8086-0.8815) en route to 0.8358 (low Jan.18). On the upside, resistance levels align at 0.8465 (high Sep.5) ahead of 0.8487 (MA200d) and finally 0.8489 (high Sep.3).
EUR/GBP weaker after ECB
The unexpectedly more dovish tone from ECB’s Draghi in his usual press conference today triggered a sharp sell-off in the single currency, accelerating the decline in the cross. In another note, the BoE left its policy stance unchanged as widely expected, boosting the sterling and thus collaborating with the downside. According to analysts at RBS, the cross “failed to break above the 76.4% retracement and the market ended up selling off and closing lower than the previous month’s opening price. This is a negative signal. For that reason, we look for a move lower to test 0.8410 and possibly 0.8370 as the primary targets”.
EUR/GBP significant levels
At the moment the cross is losing 0.40% at 0.8417 and a breach below 0.8398 (low Apr.26) would target 0.8364 (61.8% of 0.8086-0.8815) en route to 0.8358 (low Jan.18). On the upside, resistance levels align at 0.8465 (high Sep.5) ahead of 0.8487 (MA200d) and finally 0.8489 (high Sep.3).