10 Oct 2013
EUR/GBP continues to set up a bullish tone
FXstreet.com (Athens) – The EUR/GBP after the yesterday’s solid boost on the dismal release of very discouraging UK data, continues today to grind slowly higher, after having already broken an one month high as of 0.8475.
EUR/GBP breaks more than one month high ahead of BoE minutes
The EUR/GBP continues to move to the upper trend area today despite the yesterday’s also sharp uptrend movement, as well as the dismal data released earlier regarding the Euro land. Elaborating on, all the countries of Euro zone, i.e. France, Italy and Greece, reported much worse data than expected but still the single currency is heading upwards against its major counter-part the sterling. Traders interested in the cross should be very cautious today as we are ahead of the BoE meeting. Being more précised, there is a risk that we may get a statement, but this was not the case after the September conference, thus the Carney has yet to give a consistent approach on this. Therefore, leaving this risk aside, there is a solid expectation that rates and asset purchases will remain unchanged at the same levels.
Technical Outlook on EUR/GBP
Karen Jones, Head Technical Analyst at Commerzbank mentions that the “EUR/GBP EUR/GBP’s correction higher has eroded the June low at .8470 and the short term downtrend. The market is now approaching the 38.2% retracement at .8500 and we suspect that this may well hold the
initial test. This should act as tough resistance and we maintain our bearish bias while capped by .8500. Failure here will leave focus once more on the .8332 September low.Longer term the market has reversed from the top of a 4 year channel and longer term downside targets of .8280/.8155/.7980 have been introduced (Fibonacci retracements of the move up from 2012). Short term loss of the .8332 September low is expected to signal another leg lower is underway.
EUR/GBP breaks more than one month high ahead of BoE minutes
The EUR/GBP continues to move to the upper trend area today despite the yesterday’s also sharp uptrend movement, as well as the dismal data released earlier regarding the Euro land. Elaborating on, all the countries of Euro zone, i.e. France, Italy and Greece, reported much worse data than expected but still the single currency is heading upwards against its major counter-part the sterling. Traders interested in the cross should be very cautious today as we are ahead of the BoE meeting. Being more précised, there is a risk that we may get a statement, but this was not the case after the September conference, thus the Carney has yet to give a consistent approach on this. Therefore, leaving this risk aside, there is a solid expectation that rates and asset purchases will remain unchanged at the same levels.
Technical Outlook on EUR/GBP
Karen Jones, Head Technical Analyst at Commerzbank mentions that the “EUR/GBP EUR/GBP’s correction higher has eroded the June low at .8470 and the short term downtrend. The market is now approaching the 38.2% retracement at .8500 and we suspect that this may well hold the
initial test. This should act as tough resistance and we maintain our bearish bias while capped by .8500. Failure here will leave focus once more on the .8332 September low.Longer term the market has reversed from the top of a 4 year channel and longer term downside targets of .8280/.8155/.7980 have been introduced (Fibonacci retracements of the move up from 2012). Short term loss of the .8332 September low is expected to signal another leg lower is underway.