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EUR/GBP capped below hourly 200-SMA on poor UK data

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 cross in the EUR/GBP keeps the bid tone intact in the European morning, with the pound little changed following the worse-than estimate datasets from the UK.

    EUR/GBP hovers around hourly 100-SMA

    Currently, the EUR/GBP pair rises 0.41% to 0.7377, heading for a test of 0.74 handle. The EUR/GBP pair kept the range near session highs after the UK’s trade balance and construction out data failed to lift the sentiment around sterling.

    On Friday, the ONS showed that the UK’s trade deficit held steady at -11.1B in August, although missed expectations of a -10.0B reading. While the construction output negatively surprised, falling by a -4.3% m/m in Aug, against expectations of a 1% rise.

    While the cross remains elevated largely on a stronger euro versus the US dollar after the Fed minutes failed to impress the USD bulls.

    Later in the day, the cross will be influenced by the sentiment on European stocks as well as on the Wall Street.

    EUR/GBP Technical Levels

    To the upside, the next resistance is located at 0.7383 (Hourly 200-SMA), above which it could extend gains to 0.7400 (psychological levels). To the downside immediate support might be located at 0.7352 (50-SMA, 20-SMA confluence on H1) below that at 0.7300 (50-DMA).
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