4 Apr 2014
EUR/GBP is headed to new weekly lows below 0.8260
The pair is on the move lower trying to break below 0.8260 support area. Currently, EUR/GBP is trading at 0.8260, down -0.06% on the day, having posted a daily high at 0.8274 and low at 0.8260.
Choosing between the two
Yesterday we saw a very interesting example of the battle between the currencies on almost equal terms. The UK brought series of disappointments, the ECB painted gloomy outlook, and it was the market who was supposed to choose which economy is more attractive at this stage. And the market did its choice, helping the pair to sail back to the recent lows around 0.8260 area after a short-term spike to 0.8313 high. It’s obvious, that despite all the weakness we saw from the British data recently, the BOE will be the first to tighten, and this gives the pound more scores raising the potential of further pair downside in store. Thus, we don’t rule out the slide to resume with initial target at 0.8244 support level when 0.8260 is broken.
What price levels and patterns have to be considered?
With spot trading at 0.8261, we can see next resistance ahead at 0.8264 (Weekly Low), 0.8266 (Daily Open), 0.8269 (Hourly 20 EMA), 0.8274 (Daily High) and 0.8278 (Hourly 100 SMA). Support below can be found at 0.8260 (Daily Low), 0.8259 (Yesterday's Low), 0.8244 (Daily Classic S1), 0.8222 (Daily Classic S2) and 0.8213 (Monthly Low). Looking to candlestick patterns, we can see a Doji formation on the 4-hour chart .
Choosing between the two
Yesterday we saw a very interesting example of the battle between the currencies on almost equal terms. The UK brought series of disappointments, the ECB painted gloomy outlook, and it was the market who was supposed to choose which economy is more attractive at this stage. And the market did its choice, helping the pair to sail back to the recent lows around 0.8260 area after a short-term spike to 0.8313 high. It’s obvious, that despite all the weakness we saw from the British data recently, the BOE will be the first to tighten, and this gives the pound more scores raising the potential of further pair downside in store. Thus, we don’t rule out the slide to resume with initial target at 0.8244 support level when 0.8260 is broken.
What price levels and patterns have to be considered?
With spot trading at 0.8261, we can see next resistance ahead at 0.8264 (Weekly Low), 0.8266 (Daily Open), 0.8269 (Hourly 20 EMA), 0.8274 (Daily High) and 0.8278 (Hourly 100 SMA). Support below can be found at 0.8260 (Daily Low), 0.8259 (Yesterday's Low), 0.8244 (Daily Classic S1), 0.8222 (Daily Classic S2) and 0.8213 (Monthly Low). Looking to candlestick patterns, we can see a Doji formation on the 4-hour chart .