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EUR/GBP attempting further gains on weak stock futures and Brexit fears

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 23, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The EUR/GBP pair extended gains to hit a fresh session high of 0.7832 on the back of a weak action in the European equity futures and Brexit fears.

    Ignores German GDP

    Traders ignored the data release in Germany, which left the Q4 growth rate unrevised at 0.3% q/q. The data also showed domestic demand as the main driver of growth; something which is well known to the markets.

    Hence, markets ignored the same and are attempting to push EUR to fresh highs, given the 0.90% drop in the Stoxx 50 futures. Meanwhile, Brexit fears are keeping the GBP under pressure as well.

    EUR/GBP Technical Levels

    The immediate resistance is seen at 0.7843 (Feb 22 high), above which the cross could attempt a re-test of 0.7897 (Feb 11 high). On the other hand, a breakdown of immediate support at 0.78 could see the cross drop to 0.7755 (Jan 20 high).
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