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EUR/GBP testing key support near 0.7330

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 19, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The cross in the EUR/GBP failed to resist 0.7350 levels and dropped to fresh session lows in the mid-European trades, mainly driven renewed selling pressure seen in the euro.

    EUR/GBP stuck in narrow range

    Currently, the EUR/GBP pair loses -0.26% and hits fresh session lows at 0.7328, breaching the 50-DMA support located at 0.7343. The EUR/GBP cross met supply and extends declines after the EUR/USD pair shaved-off gains and reverted to losses on the back of solid gains on the European equities and on expectations that the ECB may provide fresh cues on QE expansion at its Thursday’s policy meeting.

    On the GBP-side, the pound remains bid versus the US dollar as rising risk-appetite favours the riskier currency – sterling. However, the weakness seen in the UK’s FTSE may keep the upside restricted in the cable.

    Markets now turn their attention towards BOE Carney speech due tomorrow amid a data-quiet session ahead.

    EUR/GBP Technical Levels

    To the upside, the next resistance is located at 0.7365 (5-DMA), above which it could extend gains to 0.7400 (psychological levels). To the downside immediate support might be located at 0.7300 (round number) below that at 0.7220 (200-DMA).
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