EUR/GBP clocks one year high

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 14, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The carry unwind on account of the risk aversion in the European equities strengthened the bid tone on the EUR and pushed the EUR/GBP pair to a one-year high of 0.7606.

    Hovers around 0.76

    The upside momentum appears to have stalled around 0.76 handle ahead of the BOE rate decision and minutes release. Part of the rally in the EUR/GBP seen in Europe was also fuelled by a drop in the GBP/USD pair from 1.44 to 1.4370.

    Ahead in the day, the broader market sentiment would remain a major influence on the EUR/GBP pair. The tone of the BOE minutes – hawkish/dovish – could aid further gains or trigger correction in the EUR/GBP pair.

    EUR/GBP Technical Levels

    The immediate resistance is seen at 0.7624 (Jan 15, 2015 low), above which the cross could target 0.7693 (Jan 20, 2015 high). On the other hand, failure to sustain above 0.7592 (Feb 3, 2015 low) would open doors for technical correction to 0.7555 (Jan 11 high).
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