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EUR/GBP: more upside to Oct lows to come?

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 3, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - EUR/GBP is currently trading 0.7230 with a high of 0.7242 and low of 0.7045.

    EUR/GBP rallied on the back of the ECB outcome, while sterling had been making a quiet come back over November while Draghi set up markets for more than was delivered today, equating to a preempted shorting the euro that has been almost totally unwound for the month of November.

    The outlook for sterling is a little bearish than of previous as the idea of a rate hike from the UK has been set back later into 2016 while the strength of sterling has been acting as tightening effect as it is. The euro on the other hand is back into the hands of the bulls with more room to go to the topside, but tomorrow's Nonfarm, Payrolls should keep the bulls in check for the being.

    EUR/GBP levels

    Technically, the bulls are through the 200 DMA at 0.7199 with R3 offering some resistance at 0.7219. RSI is also into overbought territory at 81. However, daily momentum is strong and the cross may find a base here for the time being of which bulls could build upon for a test of the Oct low of 0.7303.
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