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10 Sep 2015
EUR/GBP eyeing the hourly 200 SMA at 0.7312
FXStreet (Guatemala) - EUR/GBP is currently trading at 0.7295 with a high of 0.7320 and a low of 0.7242.
EUR/GBP has been attempting breakouts through the 200 DMA and managed a score on the 0.74 handle in the middle of August, but September business has been a different story so far. However, the cross has garnered space back on the 0.73 handle and is looking for a break of the 200 SMA on the hourly chart at 0.7312.
EUR/GBP and BoE
In respect of the BoE today, who has voted 8-1 to leave bank rate at 0.5% and allowing EUR/GBP to drift higher, James Knightley, analysts at ING Bank, explained that the MPC sounded relatively relaxed about the recent China/EM worries and financial market volatility suggesting that “some caution was due in drawing out major trends from short-term developments”." He further added, "We think that the global risks, market volatility and low headline inflation readings mean that there is little prospect of an imminent rate move. Nonetheless, the domestic strength in activity and rising wage pressures leads us to favour a February 2016 hike."
EUR/GBP upside levels
Technically, Karen Jones, chief analyst at Commerzbank explained that the market has recently failed at the top of a 6 month channel (0.7410) and will need to clear the 0.7421 recent high to retarget the 0.7482 May high ahead of the 0.7479 55 week ma.
"Currently we suspect there is scope for this rally to extend to the 0.7616/36 double Fibo 38.2% retracement of the move from the 2013 peak and the 23.6% retracement of the move from the 2008 peak."
EUR/GBP has been attempting breakouts through the 200 DMA and managed a score on the 0.74 handle in the middle of August, but September business has been a different story so far. However, the cross has garnered space back on the 0.73 handle and is looking for a break of the 200 SMA on the hourly chart at 0.7312.
EUR/GBP and BoE
In respect of the BoE today, who has voted 8-1 to leave bank rate at 0.5% and allowing EUR/GBP to drift higher, James Knightley, analysts at ING Bank, explained that the MPC sounded relatively relaxed about the recent China/EM worries and financial market volatility suggesting that “some caution was due in drawing out major trends from short-term developments”." He further added, "We think that the global risks, market volatility and low headline inflation readings mean that there is little prospect of an imminent rate move. Nonetheless, the domestic strength in activity and rising wage pressures leads us to favour a February 2016 hike."
EUR/GBP upside levels
Technically, Karen Jones, chief analyst at Commerzbank explained that the market has recently failed at the top of a 6 month channel (0.7410) and will need to clear the 0.7421 recent high to retarget the 0.7482 May high ahead of the 0.7479 55 week ma.
"Currently we suspect there is scope for this rally to extend to the 0.7616/36 double Fibo 38.2% retracement of the move from the 2013 peak and the 23.6% retracement of the move from the 2008 peak."