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EUR/GBP upside capped by hourly 50-SMA, near 0.7900

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 20, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The upbeat momentum seen in the EUR/GBP cross in the Asian session lost steam at hourly 50-SMA located at 0.7915 post-European open, and the prices now waver around 0.79 handle.

    EUR/GBP locked in a tight range

    Currently, the EUR/GBP pair trades 0.11% higher at 0.7899, hovering within a striking distance of session lows struck at 0.7893 last hour. The EUR/GBP cross is seen moving back and forth around 0.79 handle over the past few hours, unable to sustain at higher levels. Although manages to keep the green zone on the back of sustained buying interest seen around the EUR/USD pair, as markets eagerly await ECB Draghi’s speech due any moment from now.

    While the cable trades muted just below 1.44 handle, stalling its recovery from UK jobs induced losses near 1.4410 levels. The UK jobless claims change for March jumped to 6,700 from -9,300, while the unemployment rate remained at 5.1% in February. Average weekly earnings excluding bonuses for February stayed at 2.2% for February and the gauge including bonuses worsened from 2.1% to 1.8%.

    EUR/GBP Technical Levels

    To the upside, the next resistance is located at 0.7959/76 (10-DMA & 20-DMA), above which it could extend gains to 0.8000 (psychological levels). To the downside immediate support might be located at 0.7880 (50-DMA) below that at 0.7825 (Mar 29 Low).
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