EUR/GBP under pressure ahead of Draghi testimony

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 15, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The corrective rally in risk assets and possible dovish comments from ECB’s Draghi later today keeps the EUR/GBP pair weak around 0.7730 levels.

    Brexit fears keeping downside restricted

    The bearish momentum is weak as the gains in Sterling are being capped on account of the Brexit fears. However, the overbought EUR is being sold as uptick in stocks has put an end to carry unwind for now. Furthermore, market expects ECB’s Draghi to stress readiness to do more during his testimony to EU parliament.

    The recovery from the daily low of 0.7714 set earlier today ran out of steam around 0.7750 and the pair is now back to near 0.7730 levels.

    EUR/GBP Technical Levels

    The immediate support is seen at 0.77 handle, which if taken out shall open doors for a drop to 0.7666 (Jan 27 high). On the other hand, a break above 0.7755 (Jan 20 high) could see the cross revisit 0.7819 (Feb 10 high).
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