EUR/GBP off lows, but gains capped around hourly 200-MA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 1, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The EUR/GBP pair saw a sharp recovery from the low of 0.7575, but failed to sustain above its hourly 200-MA at 0.7618 levels.

    GBP hurt by the drop in consumer credit

    Sterling appears to have suffered due to a sharp drop in the consumer credit in December. Moreover, the data managed to overshadow the uptick in the UK manufacturing PMI. Hence, the cross managed to recover from the low of 0.7575 levels.

    Meanwhile, the moderate losses in the European stocks also helped strengthen the bid tone around the EUR. Furthermore, ECB’s Nowotny also advised markets to have rational expectations while heading into the ECB march rate decision. His statement carried a slightly hawkish tinge and hence supported the EUR.

    EUR/GBP Technical Levels

    The cross currently trades around 0.7605 levels. The immediate support is seen at 0.7573 (23.6% of 0.6981-0.7755), under which the cross could dip to 0.7525 (Jan 22 low). On the other hand, a break above 0.7618 (hourly 200-MA) could see the pair re-test 0.7666 (Jan 27 high).
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