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EUR/GBP: two business around 0.80 psychological handle

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 12, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    EUR/GBP is currently trading at 0.7984 with a high of 0.8029 and low of 0.7960.

    Since the EUR/GBP sell-off below the 0.80 handle and subsequent support at 0.8000 and double bottom lows of 11th April and earlier in the European session, the cross made a subsequent low of 0.7960 before a recovery back to the 0.8000 level and then suffered more sellers down to current spot of 0.7076/80 at time of writing.

    For the week ahead, we look to the BoE. "Core inflation (at 1.5%) is creeping closer to target, which alongside an expected boost from higher import prices this year, will put pressure on the BoE to hike rates should the UK vote to remain in the EU."

    EUR/GBP levels

    Karen Jones, chief analyst at Commerzbank explained that EUR/GBP has sold off as expected. "The market recently reached target, it has a 13 count on the daily chart, complex divergence of the daily RSI and directly overhead lies the 2008-2016 resistance line, which is located just above here at 0.8162/0.8200 – we look for failure."
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