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EUR/GBP above 0.80, at highest since November 2014

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 1, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    EUR/GBP cross clocked rose to 0.8020; highest since November 2014 as upbeat US data is led to a bigger sell-off in GBP/USD pair than in EUR/USD pair.

    Brexit fears make GBP more vulnerable

    Sterling is already under pressure due to Brexit fears. Consequently, the slide in response to a positive US data is exaggerated when compared to EUR/USD pair. Furthermore, risk-off in the equity markets today and a dismal UK manufacturing PMI report made matters worse for Pound.

    A look at the monthly technical chart reveals the cross has been on a four month winning streak, which began from 0.7007. The spot clocked a low of 0.6931 in July 2015.

    EUR/GBP Technical Levels

    The immediate resistance is seen at 0.8067 (61.8% of 0.8769-0.6931), above which prices could make an attempt to cut through 0.81 and test 0.8158 (Feb 2014 low). Conversely, failure to sustain above 0.80 would expose previous month’s high of 0.7946 under which losses could be extended to 0.79 handle.
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