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EUR/GBP rejected at 20-DMA, reverts to daily low

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 8, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - EUR/GBP’s recovery from session lows was capped by 20-DMA and the prices came under renewed selling pressure, mainly driven by ongoing weakness in EUR/USD.

    EUR/GBP moves further away from 3-month highs

    Currently, the EUR/GBP pair drops nearly 0.60% to 0.7434, trading within a striking distance of the session lows posted at 0.7426. The risk-on rally in the European equities triggered renewed sell-off in the euro across the board, thereby dragging EUR/GBP lower.

    While the pound continues to trade modestly flat against the greenback, largely indifferent to the downbeat UK trade data, as the focus now remains on the key NFP report from the US due later today.

    The UK's total trade deficit came in at £3.2 billion in November, which was below a deficit of £3.5 billion booked previously, but above market estimate of it narrowing to £2.7 billion.

    EUR/GBP Technical Levels

    To the upside, the next resistance is located at 0.7476 (Oct 14 High), above which it could extend gains to 0.7500 (round number). To the downside immediate support might be located at 0.7378/74 (1h 100 & 200-SMA) below that at 0.7305 (Dec 23 Low).
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