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6 Jun 2013
EUR/GBP supported 0.8490 ahead of Central Banks
FXstreet.com (London) -After a sell off in the single currency yesterday, from 0.8550 resistance to 0.8490 support, the EUR/GBP quote is oscillating in a tight range between 0.8500 the figure and 0.8510 on the European open.
Holding above this key support that is the 50-days SMA is necessary for price to maintain the bullish bias. Technically, Karen Jones at Commerzbank FX Analyst say’s, “EUR/GBP is facing two tough overhead obstacles. One is the top of the cloud at 0.8607 currently and the second is the 0.8637 April peak. Around this level the currency pair is likely to again lose upside momentum, however. Below 0.8590/85 should see a slide back to the 0.8422 mid-May low. Failure will leave the market weighing on the downside and target the 2013 support line at 0 .8372 and the 2012-13 support line at 0.8359. “ She goes onto say, “A close above 0.8637 will cause our medium term forecast to change from neutral to bullish with the .8716 early February high being back on the map.”
Data wise, The Halifax update on UK house prices comes at 7GMT with a further small increase in prices expected before BoE 11GMT. There is a strong consensus that the MPC will hold in respect to Kings last meeting on asset purchases and rates. There is a market consensus that Europe will focus more on the ECB 11.45GMT, with less certainty on knowing what Mario will come u with this time around, although sentiment is for the bank to remain steady on policy settings.
Holding above this key support that is the 50-days SMA is necessary for price to maintain the bullish bias. Technically, Karen Jones at Commerzbank FX Analyst say’s, “EUR/GBP is facing two tough overhead obstacles. One is the top of the cloud at 0.8607 currently and the second is the 0.8637 April peak. Around this level the currency pair is likely to again lose upside momentum, however. Below 0.8590/85 should see a slide back to the 0.8422 mid-May low. Failure will leave the market weighing on the downside and target the 2013 support line at 0 .8372 and the 2012-13 support line at 0.8359. “ She goes onto say, “A close above 0.8637 will cause our medium term forecast to change from neutral to bullish with the .8716 early February high being back on the map.”
Data wise, The Halifax update on UK house prices comes at 7GMT with a further small increase in prices expected before BoE 11GMT. There is a strong consensus that the MPC will hold in respect to Kings last meeting on asset purchases and rates. There is a market consensus that Europe will focus more on the ECB 11.45GMT, with less certainty on knowing what Mario will come u with this time around, although sentiment is for the bank to remain steady on policy settings.