28 Apr 2015
EUR/GBP bulls are let down by lack of momentum on the bid
FXStreet (Guatemala) - EUR/GBP is currently trading at 0.7164 with a high of 0.7172 and a low of 0.7131.
EUR/GBP bulls are taking advantage of the Q1 GDP miss in the UK today, with a move from 0.7131 up to 0.7172 on the spike and now settling back a little as we progress through the US shift. The GDP numbers missed expectations for Q/Q at 0.3% vs 0.5% expected and below 0.6% last while Y/Y they number arrived at 2.4% vs 2.6% expected and below 3.0% last.
The move may have been expected to be more aggressive, but at the same time the greenback is soft and the disappointments have been diluted in the expectations for the interest rate differentials on a forward basis on the UK and US. EUR/GBP has tough looking resistance at the 0.7200 mark / cloud base and gateway to the 55 DMA that is located at the mid point of the handle. Also, GBP/USD, for instance, has flown higher to check out territory on 1.53 handle and the EUR/USD highs were traded at just shy of the psychological 1.10 handle. Technically, while capped here, Karen Jones, chief analyst at Commerzbank presumes a negative bias will persist and would allow for a retest of the 0.7015 March low and 0.7000 psychological support.
EUR/GBP bulls are taking advantage of the Q1 GDP miss in the UK today, with a move from 0.7131 up to 0.7172 on the spike and now settling back a little as we progress through the US shift. The GDP numbers missed expectations for Q/Q at 0.3% vs 0.5% expected and below 0.6% last while Y/Y they number arrived at 2.4% vs 2.6% expected and below 3.0% last.
The move may have been expected to be more aggressive, but at the same time the greenback is soft and the disappointments have been diluted in the expectations for the interest rate differentials on a forward basis on the UK and US. EUR/GBP has tough looking resistance at the 0.7200 mark / cloud base and gateway to the 55 DMA that is located at the mid point of the handle. Also, GBP/USD, for instance, has flown higher to check out territory on 1.53 handle and the EUR/USD highs were traded at just shy of the psychological 1.10 handle. Technically, while capped here, Karen Jones, chief analyst at Commerzbank presumes a negative bias will persist and would allow for a retest of the 0.7015 March low and 0.7000 psychological support.