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EUR/GBP: first decline in a week

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 10, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The pound is rising versus the euro for the first time since February 1. EUR/GBP retreated after hitting yesterday the highest level in a year at 0.7850.

    The pair on Tuesday finished far from the highs, hovering around 0.7800. Today it moved sideways around that level and then turned to the downside. Not even weak economic data from the United Kingdom changed the intra-day trend.

    The pound rose further and pushed the pair toward 0.7730. That area initially capped the decline but during the American session, it spiked to the downside and bottomed at 0.7713, the lowest since Monday. From there rebounded to the upside and rose toward 0.7770.

    EUR/GBP trend

    Despite the retreated, the pair continues to move within a bullish trend. Today’s decline should be considered a normal correction. The pair climbed almost 300 pips during the last week and a retreat seems normal.

    It pulled back but held above previous key support levels like 0.7700 and 0.7750. The upside was capped by 0.7850 yesterday. A daily close significantly on top of 0.7800 could strengthen the euro and signal a continuation of the rally.
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