EUR/GBP: Bull grip tightens, trades around 0.74

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 9, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The market’s sudden love affair with the EUR pushed the EUR/GBP cross to a session high of 0.7416 head of the NY session.

    Trades above weekly 50-MA

    The sits comfortably above its weekly 50-MA located at 0.7390, although offers above 0.74 is making life difficult for the EUR bulls. The broad based USD selling, coupled with the oil driven risk-on has favoured EUR more than other majors.

    Meanwhile, the rise in the UK trade deficit kept a lid on the gains in the GBP/USD. Consequently, EUR/GBP cross advanced to a high of 0.7416. The spot now trades around 0.7410 levels.

    EUR/GBP Technical Levels

    The immediate resistance is seen at 0.7443 (Oct 2) high, above which the pair could rise to 0.7483 (May 7 high) and 0.75 levels. On the other side, support is seen at 0.7350 (Oct 2 low), under which the pair could fall to 0.7333 (Oct 7 low); which if taken out could push the pair down to 0.7274 (200-DMA).
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