11 Nov 2013
EUR/GBP higher ahead of ‘US half session’
FXstreet.com (Athens) – The EUR/GBP is trading near its daily highs ahead of the US opening, as the rise in the trading activity assists the cross to move higher.
The EUR/GBP ascends near its daily high (0.8383), hovering now at 0.8379 as the US opening helps the cross to move higher. Briefly, ahead of, there is a ‘half’ trading session in the US today; while the bond markets will be closed the stock markets will be opened. The single currency despite the light calendar alongside with the thin liquidity, has managed today to trend modestly higher on stronger peripheral European debt. Precisely, the Italian 10-year note yield has decreased to 4.117% (-1.7 bps) while the Spanish 10-year yield has decreased to 4.082% (-2.3 bps).
Technical Aspects on the EUR/GBP
Upwards, a solid resistance is laying at 0.8400, which is considered by many analysts to be very difficult to be breached. On the opposite side, many analysts assume that in case the cross moves towards the 0.8400 level, it will run out of steam, therefore the downtrend shift will be well back on track. Downwards, the most solid support could be find in the area of 0.8285 (50% Fibonacci of uptrend movement 0.7716 – 0.8815). BNP Paribas mentioned earlier in a report, that taken for granted that the growth and monetary policy divergence between UK and Euro zone will be increasingly pronounced the upcoming weeks, “the EUR/GBP bounces are selling opportunities.”
The EUR/GBP ascends near its daily high (0.8383), hovering now at 0.8379 as the US opening helps the cross to move higher. Briefly, ahead of, there is a ‘half’ trading session in the US today; while the bond markets will be closed the stock markets will be opened. The single currency despite the light calendar alongside with the thin liquidity, has managed today to trend modestly higher on stronger peripheral European debt. Precisely, the Italian 10-year note yield has decreased to 4.117% (-1.7 bps) while the Spanish 10-year yield has decreased to 4.082% (-2.3 bps).
Technical Aspects on the EUR/GBP
Upwards, a solid resistance is laying at 0.8400, which is considered by many analysts to be very difficult to be breached. On the opposite side, many analysts assume that in case the cross moves towards the 0.8400 level, it will run out of steam, therefore the downtrend shift will be well back on track. Downwards, the most solid support could be find in the area of 0.8285 (50% Fibonacci of uptrend movement 0.7716 – 0.8815). BNP Paribas mentioned earlier in a report, that taken for granted that the growth and monetary policy divergence between UK and Euro zone will be increasingly pronounced the upcoming weeks, “the EUR/GBP bounces are selling opportunities.”