EUR/GBP upside halted ahead of 0.7860

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 9, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The upside momentum in EUR/GBP seems to have run out of legs in the boundaries of the 0.7860 area on Tuesday.

    EUR/GBP boosted by EUR-buying

    The persistent risk aversion has given extra oxygen to the single currency today, boosting the European cross to fresh 1-year highs in the 0.7860 region. On the opposite direction, the selling mood hurting the British pound has also collaborated with the daily upside in the cross, reaching levels last seen in January 2015 in the mid-0.7800s.

    Next of relevance for the cross will be tomorrow’s Industrial/Manufacturing Production figures in the UK economy and the EC’s Economic Growth Forecasts, all ahead of the key testimony by Chief Janet Yellen at Capitol Hill.

    EUR/GBP key levels

    The European cross is now up 0.89% at 0.7825 facing the next resistance at 0.7875 (high Jan.6 2015) ahead of 0.8007 (high Dec.16 2014) and then 0.8041 (high Nov.27 2014). On the other hand, a breach of 0.7659 (low Feb.8) would expose 0.7641 (20-day sma) and finally 0.7584 (2-month uptrend).
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