EUR/GBP: bulls eye the 0.90 handle on pro euro market

Currently, EUR/GBP is trading at 0.8914, down -0.32% on the day, having posted a daily high at 0.8948 and low at 0.8904.

FOMC meeting: market will listen only to what it wants to hear

German posted a solid IFO number this week, France and Italy reported stronger than expected consumer confidence data as well this month, but EURUSD has paid no attention with 1.1700's and a strong looking fibo at recent highs capping the pair. Should today's FOMC outcome be more dovish than expected, the euro could perform extra positively and transpire through the Sterling cross, (given Brexit uncertainties: Brexit uncertainty is pound negative - ING), where bulls have 0.9000 teed-up already from the 20th July highs at 0.8994. 

EUR/GBP levels

Analysts at Commerzbank explained that EUR/GBP near term had reached its Fibo resistance and offered their analyses as follows: "EUR/GBP is consolidating below the 61.8% retracement of the move down from the October 2016 spike high – this is located circa 0.8987 and we would not be at all surprised to see a small retracement ahead of any further strength towards 0.9059, the highs from mid-October 2016. Please note that the daily RSI has not confirmed the new high and the 13 count on the daily chart suggests we will see some near term weakness. The market will now stay immediately bid above the 0.8743 14th July low. Initial support is the .8781 near term channel."