EUR/GBP clocks session high above 0.77

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 21, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The bid tone around EUR gathered pace on signs of risk aversion in Europe and pushed the EUR/GBP cross to a session high of 0.7715.

    Hovers around 0.77

    The pair is trading around 0.77 handle, but is pointing upwards as the Stoxx 50 futures are indicating the European stocks are likely to open 1% lower on the day. Hence, the EUR is on the rise in anticipation of the carry unwind in Europe.

    Later today, the pair could witness a major action during and after the ECB press conference. ECB’s Draghi is widely expected to come out dovish.

    EUR/GBP Technical Levels

    The immediate resistance is seen at 0.7715 (daily high). A break higher could see the cross re-test previous session’s high of 0.7755. On the other hand, a break below 0.7669 (previous day’s high) would open doors for a slide to 5-DMA at 0.7643.
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