20 Nov 2013
EUR/GBP gravity proving too much?
FXstreet.com (London) - EUR/GBP has dropped on demand for cable and sold off from 0.8410 to 0.8380 ahead of the minutes from the BoE.
EUR/GBP has been a mixed play but overall the pair has lost out to gravity, recording an eventual low of 0.8367. Cable has been well bid over the sessions. However, there was some hesitation to be long of sterling when the minutes revealed that there might be a case for not raising the bank rate when 7pct threshold is hit and this took the pound briefly lower. However Carney has said many times that 7% is a reference point and losses were limited. Meanwhile, there hasn’t been much in focus on the EUR apart from mixed US data that has seen a slight sell off in the EUR crosses increasing pressure on EUR/GBP to the downside.
EUR/GBP Levels
The 20 DMA is 0.8444, the 50 DMA is 0.8435 and the 200 DMA is 0.8525. RSI (14) reads 33.93. Supports are ascending from 0.8324, 0.8340, 0.8355. Spot is currently 0.8369 while resistances are 0.8411, 0.8416, 0.8464, 0.8477 and 0.8505.
EUR/GBP has been a mixed play but overall the pair has lost out to gravity, recording an eventual low of 0.8367. Cable has been well bid over the sessions. However, there was some hesitation to be long of sterling when the minutes revealed that there might be a case for not raising the bank rate when 7pct threshold is hit and this took the pound briefly lower. However Carney has said many times that 7% is a reference point and losses were limited. Meanwhile, there hasn’t been much in focus on the EUR apart from mixed US data that has seen a slight sell off in the EUR crosses increasing pressure on EUR/GBP to the downside.
EUR/GBP Levels
The 20 DMA is 0.8444, the 50 DMA is 0.8435 and the 200 DMA is 0.8525. RSI (14) reads 33.93. Supports are ascending from 0.8324, 0.8340, 0.8355. Spot is currently 0.8369 while resistances are 0.8411, 0.8416, 0.8464, 0.8477 and 0.8505.