EUR/GBP deflates from 0.7790, German data eyed

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 9, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The prevailing risk aversion has given further legs to the single currency during the Asian trading hours, sending EUR/GBP to fresh highs just below the 0.7800 handle.

    EUR/GBP attention to risk trends, data

    Market unease continues to drive sentiment ahead of the European open on Tuesday, with the abrupt drop of the Nikkei 225 (more than 5%) and JPY strength dominating the headlines for the time being.

    The cross has clinched levels last seen in January 2015 in the boundaries of 0.7800 the figure, propped up by a solid momentum in EUR in a context where the risk aversion has taken the main role.

    On the data front, UK’s Trade Balance figures during December are expected later, while German Industrial Production and Trade Balance results are due this side of the Channel.

    EUR/GBP key levels

    The European cross is now up 0.20% at 0.7772 facing the next resistance at 0.7875 (high Jan.6 2015) ahead of 0.8007 (high Dec.16 2014) and then 0.8041 (high Nov.27 2014). On the other hand, a breach of 0.7659 (low Feb.8) would expose 0.7641 (20-day sma) and finally 0.7584 (2-month uptrend).
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