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16 Sep 2013
EUR/GBP heading upwards but still capped by 0.8400
FXstreet.com (Athens)- The EUR/GBP was trading at a very congested range since almost an hour ago, but now seems to gain an uptrend momentum.
The EUR/GBP was hovering in a very tight area amidst dismal statements on behalf of superior European officials and a light calendar data, regarding the Euro land and England, respectively. Many traders were awaiting for some inflationary pressures on behalf of Euro zone, as it is widely known that inflation is often a sign of accelerating growth prospects and should be viewed as positive for the Euro. However, the CPI data came across with the broader expectations, but it was the more dovish than expected statements on behalf of Draghi, that dragged downwards the pair. Last but not least, the currency cross I now trying to boost momentum and break the crucial (also in psychological terms), 0.8400 area.
Technical Outllook on EUR/GBP
Karen Jones, Head Technical Analyst at Commerzbank suggests that the EUR/GBP “is under pressure, but should find some support circa 0.8350. Also, EUR/GBP again sold off sharply, which has somewhat negated our fears over a rebound. The market has started to erode its 55 week ma at .8374 and despite the TD perfected set up and 13 count clearly remains vulnerable on the downside. The intraday charts indicate that this move should terminate circa .8350. Any rebounds will find initial resistance offered by the June low at .8470, the 200 day ma at .8497 and stronger resistance at .8515, the 38.2% Fibonacci retracement of the recent decline. Longer term the market has reversed from the top of a 4 year channel and longer term downside targets .8280/.8155/.7980 have been introduced (Fibonacci retracements of the move up from 2012).
The EUR/GBP was hovering in a very tight area amidst dismal statements on behalf of superior European officials and a light calendar data, regarding the Euro land and England, respectively. Many traders were awaiting for some inflationary pressures on behalf of Euro zone, as it is widely known that inflation is often a sign of accelerating growth prospects and should be viewed as positive for the Euro. However, the CPI data came across with the broader expectations, but it was the more dovish than expected statements on behalf of Draghi, that dragged downwards the pair. Last but not least, the currency cross I now trying to boost momentum and break the crucial (also in psychological terms), 0.8400 area.
Technical Outllook on EUR/GBP
Karen Jones, Head Technical Analyst at Commerzbank suggests that the EUR/GBP “is under pressure, but should find some support circa 0.8350. Also, EUR/GBP again sold off sharply, which has somewhat negated our fears over a rebound. The market has started to erode its 55 week ma at .8374 and despite the TD perfected set up and 13 count clearly remains vulnerable on the downside. The intraday charts indicate that this move should terminate circa .8350. Any rebounds will find initial resistance offered by the June low at .8470, the 200 day ma at .8497 and stronger resistance at .8515, the 38.2% Fibonacci retracement of the recent decline. Longer term the market has reversed from the top of a 4 year channel and longer term downside targets .8280/.8155/.7980 have been introduced (Fibonacci retracements of the move up from 2012).