EUR/GBP retakes 0.76 handle on risk-off in Europe

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 2, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The EUR/GBP pair rose above 0.76 handle as the offered tone around GBP and bid tone around EUR gathered pace amid risk-off in the European equities.

    Focus on stocks and UK data

    The sentiment in the major European equity markets could continue to affect the demand for the funding currency EUR. As of now, a 1% drop in the major European equities is helping the EUR gain grounds via carry unwind.

    Meanwhile, the UK construction PMI could affect demand for Sterling. However, the data risks being ignored if the risk-off worsens.

    EUR/GBP Technical Levels

    The pair is currently trading around 0.7608 (10-DMA). A break higher could see the pair test 0.7666 (Jan 27 high), above which a major hurdle is seen at 0.77 handle. On the other hand, a break below 0.7573 (23.6% of 0.6981-0.7755) could open doors for a slide to 0.7541 (previous day’s low).
    For more information, read our latest forex news.

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