14 Mar 2016
EUR/GBP: on the sidelines ahead of a key week
EUR/GBP is consolidated around the cluster of the 20, 100 and 200 1hr sma's in a sideways channel after last week's blow out on the ECB where the euro turnaround across the board and rallied, taking the cross up through the 0.78 handle.
In the European session, EZ industrial production were strong numbers for both m/m and y/y, but there was little of a reaction in the euro and instead markets look ahead to the FOMC, BoE and jobs data. While no actions are expected by the banks, the detail in all the events will be critical this week and volatility is to be expected in the cross.
EUR/GBP levels
The price action of late has been quite wild. As noted by Karen Jones, chief analyst at Commerzbank, "EUR/GBP dropped to 0.7654 before sharply reversing its trend and rallying all the way up close to the 0.7896 February 11 high. Key resistance is the recent high of 0.7927 and the 0.7937 200 week moving average. If bettered, the .8000 region will be back in play. Immediate upside pressure will be maintained while the four month support line at 0.7663 underpins."
In the European session, EZ industrial production were strong numbers for both m/m and y/y, but there was little of a reaction in the euro and instead markets look ahead to the FOMC, BoE and jobs data. While no actions are expected by the banks, the detail in all the events will be critical this week and volatility is to be expected in the cross.
EUR/GBP levels
The price action of late has been quite wild. As noted by Karen Jones, chief analyst at Commerzbank, "EUR/GBP dropped to 0.7654 before sharply reversing its trend and rallying all the way up close to the 0.7896 February 11 high. Key resistance is the recent high of 0.7927 and the 0.7937 200 week moving average. If bettered, the .8000 region will be back in play. Immediate upside pressure will be maintained while the four month support line at 0.7663 underpins."