EUR/GBP turns negative below 0.7400

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 13, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - A bout of buying interest around the sterling has sent EUR/GBP to test the area of session troughs in the 0.7400/0.7390 band.

    EUR/GBP lower on M&A chatter

    The decline in the cross is now picking up pace fuelled by market chatter on the M&A sector, where AB InBev has come to an agreement to take over SABMiller at £44 per share.

    Still in the UK, inflation figures are due later followed by the German/EMU ZEW Survey. Consensus see consumer prices in the UK economy to come in flat during last month, while October’s ZEW indicator is expected to deflate from previous prints.

    EUR/GBP relevant levels

    As of writing the cross is down 0.03% at 0.7398 with the next support at 0.7362 (up trend from September low) followed by 0.7300 (55-d sma/psychological level) and then 0.7196 (monthly low Sep.22). On the upside, a surpass of 0.7442 (high Oct.2) would expose 0.7483 (high May 7) and finally 0.7500 (psychological handle).
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