4 Mar 2015
EUR/GBP: Directly offered below 0.7314
FXStreet (Guatemala) - EUR/GBP is currently trading at 0.7256 with a high of 0.7283and a low of 0.7236.
EUR/GBP is consolidating the downside and stabilising here post a minor recovery and bounce from the aforementioned lows. Although recent EZ data has improved over recent times, the euro continues to struggle and has been taken lower again with a strong greenback weighing on the cross again.
Technically, EUR/GBP is now trading around an interyear pivot and target at this point. "The new low of 0.7243 has been accompanied by a large divergence of the daily RSI and this depicts a severe loss of downside momentum. We suspect that the market will recover very near term.," explained Karen Jones, chief analyst at Commerzbank and added, "The market will remain directly offered below the 0.7314 accelerated resistance line and will need to overcome this level to alleviate immediate downside pressure. Above the 0.7314 accelerated downtrend lies the 23.6% retracement of the down move at 0.7392."
EUR/GBP is consolidating the downside and stabilising here post a minor recovery and bounce from the aforementioned lows. Although recent EZ data has improved over recent times, the euro continues to struggle and has been taken lower again with a strong greenback weighing on the cross again.
Technically, EUR/GBP is now trading around an interyear pivot and target at this point. "The new low of 0.7243 has been accompanied by a large divergence of the daily RSI and this depicts a severe loss of downside momentum. We suspect that the market will recover very near term.," explained Karen Jones, chief analyst at Commerzbank and added, "The market will remain directly offered below the 0.7314 accelerated resistance line and will need to overcome this level to alleviate immediate downside pressure. Above the 0.7314 accelerated downtrend lies the 23.6% retracement of the down move at 0.7392."