EUR/GBP: bulls loosen grip, drops below hourly 100-MA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 12, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The carry unwind has come to a halt amid uptick in the European stocks, pushing the EUR/GBP cross below its hourly 100-MA at 0.7782 levels.

    Supported by 5-DMA

    The pair appears to have found support at its 5-DMA located at 0.7767 levels. The cross turned lower from the high of 0.7897 seen yesterday and extended the drop in Europe following a 1% rise in the Stoxx 50 index.

    The European stocks are witnessing a relief rally ahead of the weekend, but it remains to be seen how markets react after Chinese traders return to markets next week. As of now, the stocks remain upbeat keeping the pair under pressure between 5-DMA and hourly 100-MA.

    EUR/GBP Technical Levels

    The immediate hurdle is seen at 0.7782 (hourly 100-MA), above which the spot could target 0.7851 (Feb 9 high). On the other hand, a break below 0.7767 (5-DMA) would open doors for a drop to 0.7713 (Jan 19 high).
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