EUR/GBP clocks fresh one year high

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 15, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The EUR/GBP pair clocked a fresh one-year high of 0.7659 after the dismal data in the US worsened risk averse mood (carry unwind) and increased demand for the EUR (funding currency).

    S&P 500 futures down 2.8%, EUR strengthens

    The S&P 500 futures in the US now indicate the index is likely to open 2.8% lower on the day. The futures were down 1.8% ahead of the data. The heightened risk aversion following the dismal US data pushed the EUR/USD pair near 1.10 levels.

    Consequently, the EUR/GBP cross rallied to fresh one-year high. The dismal response from the GBP/USD also aided the rise in the cross.

    EUR/GBP Technical Levels

    The pair currently trades at 0.7645. The immediate resistance is seen at 0.7659 (daily high), above which the cross could target 0.7714 (Jan 21 high). On the other hand, a break below 0.7607 (previous day’s high) would open doors for a correction to 0.7525 (daily low).
    For more information, read our latest forex news.

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