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4 Dec 2014
EUR/GBP supported in 0.7840
FXStreet (Edinburgh) - EUR/GBP is now hovering over the mid-0.7800s, coming down from session peaks beyond 0.7860.
EUR/GBP eyes on BoE, ECB
The cross is looking to extend the bounce off recent weekly lows in the 0.7830 neighbourhood, ahead of the BoE and ECB meetings. However, the door seems to be open for further downside rather than a corrective rebound, as consensus expects the ECB to strike a dovish message, whereas market participants largely anticipate no changes in the BoE policy. In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, “Immediate resistance lies at the .8038 200 day ma but extends to .8083/97 50% retracement and pivot line, and while capped here, the risk remains for a retest of the .7757/44 major support”.
EUR/GBP relevant levels
At the moment the pair is up 0.02% at 0.7850 with the next resistance 0.7916 (21-d MA) followed by 0.7917 (100-d MA) and finally 0.7919 (high Dec.3). On the flip side, a breakdown of 0.7832 (hourly low Dec.4) would open the door to 0.7799 (low Nov.6) and then 0.7767 (2014 low Sep.30).
EUR/GBP eyes on BoE, ECB
The cross is looking to extend the bounce off recent weekly lows in the 0.7830 neighbourhood, ahead of the BoE and ECB meetings. However, the door seems to be open for further downside rather than a corrective rebound, as consensus expects the ECB to strike a dovish message, whereas market participants largely anticipate no changes in the BoE policy. In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, “Immediate resistance lies at the .8038 200 day ma but extends to .8083/97 50% retracement and pivot line, and while capped here, the risk remains for a retest of the .7757/44 major support”.
EUR/GBP relevant levels
At the moment the pair is up 0.02% at 0.7850 with the next resistance 0.7916 (21-d MA) followed by 0.7917 (100-d MA) and finally 0.7919 (high Dec.3). On the flip side, a breakdown of 0.7832 (hourly low Dec.4) would open the door to 0.7799 (low Nov.6) and then 0.7767 (2014 low Sep.30).