7 Aug 2013
EUR/GBP up after Tuesday’s gains ahead of BOE inflation report
FXstreet.com (Barcelona) - The EUR/GBP is following Tuesday’s bullish reversal with more gains ahead of what promises to be a market-moving quarterly inflation report from the Bank of England.
ECB or BOE – who goes “hawkish” first?
As traders await the big quarterly inflation update from the Bank of England and the BOE’s Mark Carney’s speech to Parliament, the question on EUR/GBP traders’ minds is “Who will take away the punch bowl from the guests first?” The recent trends have been stronger data out of Britain and mildly positive numbers out of the EU. Wednesday’s British news flow certainly has the potential to move markets in either direction. If the trends hold up and Carney even hints at a more hawkish attitude, then EUR/GBP could really tumble.
Technical outlook for EUR/GBP
Technicians say EUR/GBP is in the middle of the potential trading range on multiple time frames. Short-term, though, EUR/GBP has resistance at 0.8680 and 0.8695 – both of which are horizontal line supports from the last five trading sessions. Meanwhile, support comes into play at the Tuesday low of 0.8618.
ECB or BOE – who goes “hawkish” first?
As traders await the big quarterly inflation update from the Bank of England and the BOE’s Mark Carney’s speech to Parliament, the question on EUR/GBP traders’ minds is “Who will take away the punch bowl from the guests first?” The recent trends have been stronger data out of Britain and mildly positive numbers out of the EU. Wednesday’s British news flow certainly has the potential to move markets in either direction. If the trends hold up and Carney even hints at a more hawkish attitude, then EUR/GBP could really tumble.
Technical outlook for EUR/GBP
Technicians say EUR/GBP is in the middle of the potential trading range on multiple time frames. Short-term, though, EUR/GBP has resistance at 0.8680 and 0.8695 – both of which are horizontal line supports from the last five trading sessions. Meanwhile, support comes into play at the Tuesday low of 0.8618.