EUR/GBP wobbles near 0.7700, ECB eyed

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 21, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The now better tone around the single currency is now collaborating with the recovery in EUR/GBP, which is currently hovering over the 0.7680/90 band.

    EUR/GBP focus on ECB

    The European cross is recovering part of yesterday’s pullback, with decent support emerging around the mid-0.7600s for the time being. Better-than-expected UK labour market figures have lent support to the sterling on Wednesday, prompting the cross to retreat from 1-year highs in the 0.7700 neighbourhood.

    A firmer tone today is allowing the cross to trade closer to 0.7700 the figure ahead of the ECB monetary policy meeting and the subsequent press conference by President Draghi, all due in the European afternoon.

    EUR/GBP key levels

    The European cross is now losing 0.06% at 0.7679 and a breakdown of 0.7485 (20-day sma) would aim for 0.7468 (2-month uptrend) and finally 0.7310 (low Jan.5). On the other hand, the immediate hurdle lines up at 0.7756 (high Jan.20) followed by 0.8007 (high Dec.16 2014) and then 0.8041 (high Nov.27 2014).
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