19 Jan 2015
EUR/GBP better bid and bulls battle at the gates
FXStreet (Guatemala) - EUR/GBP is currently trading at 136.66 with a high of 136.84 and a low of 135.14 and 0.46% up on the day.
EUR/GBP has been better bid at the start of the week, climbing in an extension of last week's recovery below 0.7600 form 0.7595 lows. 0.7640 has been left for dust but the highs are capping further advances from here for now.
Meanwhile, there are plenty of risks ahead this week, with the ECB meeting on the 22nd, being the biggest elephant in the room. This event is likely to bring volatility while the majority of the FX space is expecting the ECB to announce more front-loaded EGB purchases, and likely reacting to the initial shock in size and pace of EGB purchases.
EUR/GBP technical risk on ECB downside outcome
With the event's outcome likely to weigh on the euro yet again, another sell-off could take us back towards the base of the 2013-2015 channel at 0.7580 where directly below lies the 2000-2015 uptrend at 0.7561, as noted by Karen Jones, chief analyst at Commerzbank. "The downside from here looks limited short term as we would expect these to hold the initial test. The market will remain directly offered below the 0.7765/0.7874 region. Note that our longer term target is the 0.7445 43 year uptrend."
EUR/GBP has been better bid at the start of the week, climbing in an extension of last week's recovery below 0.7600 form 0.7595 lows. 0.7640 has been left for dust but the highs are capping further advances from here for now.
Meanwhile, there are plenty of risks ahead this week, with the ECB meeting on the 22nd, being the biggest elephant in the room. This event is likely to bring volatility while the majority of the FX space is expecting the ECB to announce more front-loaded EGB purchases, and likely reacting to the initial shock in size and pace of EGB purchases.
EUR/GBP technical risk on ECB downside outcome
With the event's outcome likely to weigh on the euro yet again, another sell-off could take us back towards the base of the 2013-2015 channel at 0.7580 where directly below lies the 2000-2015 uptrend at 0.7561, as noted by Karen Jones, chief analyst at Commerzbank. "The downside from here looks limited short term as we would expect these to hold the initial test. The market will remain directly offered below the 0.7765/0.7874 region. Note that our longer term target is the 0.7445 43 year uptrend."