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EUR/GBP jumps above 0.7700 to fresh 1-year highs

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - The pound dropped further across the board during the American session and pushed EUR/GBP to the upside. The pair climbed more than 50 pips during the last hour and broke above 0.7700, for the first time in a year.

    The pair peaked at 0.7712 and it was trading above 0.7700, holding a bullish tone. To the upside, the next resistance might be seen around 0.7750/70 (2012 lows). On the opposite direction, support levels might now be located at 0.7695 (Jan 15 high) and 0.7655/60 (previous daily high).

    GBP decline unstoppable

    Today the pound was rising in the market, with some support after the release of inflation data from the United Kingdom, but then, the governor of the Bank of England signaled that rates were far from raising. The words of Carney reduced expectations of a rate hike in the coming months and pushed the pound sharply to the downside.

    While EUR/GBP rose above 0.7700, GBP/USD broke below 1.4200 and under 2010 lows. The pound is the worst performer on Tuesday among the most traded currencies.
    For more information, read our latest forex news.

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