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EUR/GBP trims losses, back around 0.7050

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 16, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The cross in the EUR/GBP bounced-off fresh three-month lows just ahead of 0.7000 levels and extends recovery towards the mid-point of 0.70 handle.

    EUR/GBP recovers from 0.7020 region

    Currently, the EUR/GBP pair trades -0.26% lower at 0.7051, retreating from fresh three-month lows reached at 0.7023 in early Asia. The cross tries hard to fill in the bearish gap, although recovered more than half the drop led by Paris terror attack news, which weighed heavily on the euro.

    However, EUR/GBP keeps losses as the pound remains weak against the US dollar on the back of diminishing bids for riskier currencies. While markets shift their attention towards key macro releases from the UK docket in the week ahead.

    In the day ahead, the cross will be influenced by the sentiment on the European markets and the Euro zone final CPI figures due out later this session.

    EUR/GBP Technical Levels

    To the upside, the next resistance is located at 0.7065/69 (5-DMA/1h 50-SMA), above which it could extend gains to 0.7096/0.7100 (1h 200-SMA/ round number). To the downside immediate support might be located at 0.7023 (daily low) below that at 0.6981 (June low).
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