Back
4 Oct 2013
EUR/GBP marching on but for how long?
FXstreet.com (London) - EUR/GBP has continued to rise higher and reached 0.8478. The pair has come off since and supply has continued on the NA open where the pair is currently trading at 0.8457 and up 0.35%.
Research teams at TD Securities explained that GBP’s weakness seems to be driven by more technical issues and longs being squeezed. Meanwhile, there are some who view that EUR/USD has run its course for the time being, currently down -0.23% on the session while some poor data came across the wires earlier in Europe in German and EZ PPI coming in lower than expectations put further pressure to the downside.
EUR/GBP Levels
Karen Jones, chief strategist at Commerzbank said, “We expect that the market will find strong resistance at the June low at .8470 and the 38.2% retracement at .8500. This resistance is reinforced by the 2 month downtrend at .8487 and we maintain our bearish bias while by .8500. Failure here will leave focus once more on the .8332 September low”. The 20 DMA is 0.8405, the 50 DMA is 0.8512 and the 200 DMA is 0.8513. RSI (14) reads 80.55. Supports are ascending from 0.8300, 0.8333, 0.8368, 0.8382 and 0.8431 and 0.8449. Spot is currently 0.8475 while resistances are 0.8488 and 0.8505.
Research teams at TD Securities explained that GBP’s weakness seems to be driven by more technical issues and longs being squeezed. Meanwhile, there are some who view that EUR/USD has run its course for the time being, currently down -0.23% on the session while some poor data came across the wires earlier in Europe in German and EZ PPI coming in lower than expectations put further pressure to the downside.
EUR/GBP Levels
Karen Jones, chief strategist at Commerzbank said, “We expect that the market will find strong resistance at the June low at .8470 and the 38.2% retracement at .8500. This resistance is reinforced by the 2 month downtrend at .8487 and we maintain our bearish bias while by .8500. Failure here will leave focus once more on the .8332 September low”. The 20 DMA is 0.8405, the 50 DMA is 0.8512 and the 200 DMA is 0.8513. RSI (14) reads 80.55. Supports are ascending from 0.8300, 0.8333, 0.8368, 0.8382 and 0.8431 and 0.8449. Spot is currently 0.8475 while resistances are 0.8488 and 0.8505.