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15 May 2015
EUR/GBP faded the spike, back to 0.7210
FXStreet (Edinburgh) - The upside in EUR/GBP could not sustain the bullish attempt to session peaks near 0.7240, and is now returning to the low-0.7200s.
EUR/GBP lower on euro, pound
The offered tone in the shared currency and the sterling is gathering traction now, forcing the European cross to remain depressed in the 0.7200 neighbourhood. Absent releases in UK and the EMU, the risk trends are poised to be the main drivers of the price action, until the US docket kicks in later.
In the technical aspect, Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted “EUR/GBP is seeing a minor recovery from the base of the channel. The recent breach of the base of the channel has not been sustained. In order to reassert downside pressure a CLOSE below the channel, which lies at .7150 today and preferably below the .7122/18 April low is needed”.
EUR/GBP relevant levels
At the moment the cross is down 0.20% at 0.7217 with the next support at 0.7200 (psychological level) ahead of 0.7123 (low May 13) and then 0.7118 (low Apr.23). ON the flip side, a breakout of 0.7239 (high May 15) would expose 0.7252 (daily cloud base) and then 0.7257 (high May 11).
EUR/GBP lower on euro, pound
The offered tone in the shared currency and the sterling is gathering traction now, forcing the European cross to remain depressed in the 0.7200 neighbourhood. Absent releases in UK and the EMU, the risk trends are poised to be the main drivers of the price action, until the US docket kicks in later.
In the technical aspect, Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted “EUR/GBP is seeing a minor recovery from the base of the channel. The recent breach of the base of the channel has not been sustained. In order to reassert downside pressure a CLOSE below the channel, which lies at .7150 today and preferably below the .7122/18 April low is needed”.
EUR/GBP relevant levels
At the moment the cross is down 0.20% at 0.7217 with the next support at 0.7200 (psychological level) ahead of 0.7123 (low May 13) and then 0.7118 (low Apr.23). ON the flip side, a breakout of 0.7239 (high May 15) would expose 0.7252 (daily cloud base) and then 0.7257 (high May 11).