EUR/GBP slides to fresh daily lows

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 14, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The bid tone on the EUR weakened in Europe amid positive action in European equity future, pushing the EUR/GBP pair to a daily low of 0.7530.

    Safe havens/funding currencies slide

    The funding currencies like EUR and other traditional safe havens like the JPY and CHF declined as the safe haven demand continued to evaporate despite risk averse action in the Asian equities. The offered tone on the EUR strengthened further as the Euro Stoxx 50 futures advanced 0.50%.

    However, the losses are being capped to some extend by the weakness in the cable. Ahead in the day, the BOE rate decision and minutes and the sentiment in the major European equities and on the Wall Street could influence the cross.

    EUR/GBP Technical Levels

    The cross currently trades at 0.7540. The immediate resistance is seen at 0.7554 (Jan 11 high), above which the pair could target 0.7592 (Feb 3, 2015 high). On the other hand, a break below 0.75 would expose 0.7440 (hourly 200-MA).
    For more information, read our latest forex news.

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