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EUR/GBP turns positive as GBP sell-off gathers pace

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 13, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    EUR/GBP turned positive to clock a session high of 0.7984 as Cable sell-off gathered pace on talks of rise in BOE rate hike bets.

    Gains capped by risk-on in equities

    Cable is now testing bids around 1.42 levels as markets now see a 33% probability of BOE reducing rates in H1 2016 as opposed to 10% probability seen in February. BOE rate decision is due tomorrow and markets are positioning for a possible dovish talk ahead of June referendum.

    However, gains are hard to come since EUR/USD is feeling the heat of a sharp rally in the European stocks. Consequently, the pair is now trading marginally higher around 0.7978 levels.

    EUR/GBP Technical Levels

    The immediate hurdle is noted at 0.80, above which the cross could target 0.8028 (previous day’s high). A violation there would expose 0.81 handle. On the other hand, a break below 0.7961 (previous day’s low) could see the pair test support at 0.7946 (Mar 24 high) and 0.79 handle.
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