16 Oct 2013
EUR/GBP initially tumbles but soon pares all loses on UK data
FXstreet.com (Athens) – The EUR/GBP was hovering around 0.8450 before the UK labor data released, but after the solid data reading lost abruptly 25 pips (touched 0.8245) to return soon at its prior levels.
EUR/GBP only initially spiked down to 0.8425; soon pares all of its losses
The EUR/GBP was moving sideways near 0.8450 till the UK data released. As soon as the data showed that UK labor market continues to strengthen the sterling got a real boost across the board, dragging down the cross to 0.8425 level. Briefly, while the unemployment rate remained at the same level the jobless claims fell 41.700 which is the biggest monthly fall since the June as of 1997. However, while the sterling was initially buoyed by solid UK data soon pared its losses thus, the cross returned to its initial level.
Technical Aspects of the EUR/GBP
Axel Rudolph, Head Technical Analyst at Commerzbank suggests that the “EUR/GBP’s correction higher probably ended at the 55 day moving average at .8492 with it having retested the breached resistance line at .8439 and targeting the October 8th low at .8425. Further down the March, April and May lows can be seen at .8417/.8399. Longer term the market has reversed from the top of a four year channel and long term downside targets of .8280/.8155/.7980 have been introduced (Fibonacci retracements of the move up from 2012).”
EUR/GBP only initially spiked down to 0.8425; soon pares all of its losses
The EUR/GBP was moving sideways near 0.8450 till the UK data released. As soon as the data showed that UK labor market continues to strengthen the sterling got a real boost across the board, dragging down the cross to 0.8425 level. Briefly, while the unemployment rate remained at the same level the jobless claims fell 41.700 which is the biggest monthly fall since the June as of 1997. However, while the sterling was initially buoyed by solid UK data soon pared its losses thus, the cross returned to its initial level.
Technical Aspects of the EUR/GBP
Axel Rudolph, Head Technical Analyst at Commerzbank suggests that the “EUR/GBP’s correction higher probably ended at the 55 day moving average at .8492 with it having retested the breached resistance line at .8439 and targeting the October 8th low at .8425. Further down the March, April and May lows can be seen at .8417/.8399. Longer term the market has reversed from the top of a four year channel and long term downside targets of .8280/.8155/.7980 have been introduced (Fibonacci retracements of the move up from 2012).”