EUR/GBP tests hourly 50-SMA post-Ifo

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 25, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The EUR/GBP cross extends its recovery mode in the European session, and caught a fresh bid tone following the release of worse than estimates German Ifo surveys.

    EUR/GBP sees a 50-pips recovery

    Currently, the EUR/GBP pair trades 0.45% higher at 0.7603, having posted fresh session highs at 0.7608 last minutes. The bid tone around the EUR/GBP cross grew bigger and the prices advanced through 0.76 barrier, mainly on the back of sudden selling interest seen in the cable. While the common currency paid little heed to the dismal German Ifo print.

    The headline Ifo Business Climate Index came in at 107.3 in Jan, compared to 108.6 booked in Dec and worse than forecasts of 108.5.

    On the GBP-side, a fresh selling wave knocked off the GBP/USD pair to fresh session lows of 1.4235 as deteriorating risk sentiment weigh on the GBP. The UK’s FTSE is down -0.40%.

    Looking ahead, the ECB Chief Draghi’s speech will be closely watched amid a data empty NY session today.

    EUR/GBP Technical Levels

    To the upside, the next resistance is located at 0.7647 (1h 100-SMA), above which it could extend gains to 0.7700 (round number). To the downside immediate support might be located at 0.7581 (Jan 19 High) below that at 0.7537 (20-DMA).
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