EUR/GBP: Bears eye Tuesday’s low

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 2, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The offered tone around EUR strengthened in early Europe, pushing the EUR/GBP cross lower to near Tuesday’s low of 0.7757 levels.

    Down for fifth straight session

    The bears are looking to extend the four day losing streak on the back of a flight to riskier assets and heightened speculation of a more aggressive ECB easing next week. The latest wave of selling appears to have been triggered by a 0.40% rise in the Euro Stoxx 50 futures.

    The data calendar in the Eurozone is empty; hence EUR traders would continue to track German bond yields and stock markets. Meanwhile, Sterling traders await the UK construction PMI data.

    EUR/GBP Technical Levels

    The cross fell to a low of 0.7761 before recovering slightly to trade around 0.7775. The immediate resistance is seen at 0.7817 (10-DMA), above which prices could target 0.7853 (5-DMA). On the other hand, a break below 0.7757 (Tuesday’s low) would open doors for a slide to 0.77 handle.
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