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9 Sep 2013
EUR/GBP resumes positioning and bid
FXstreet.com (London) - EUR/GBP; a steep drift higher to close the gap. EUR/GBP had opened offered at the start of this week, but has climbed to meet late Friday session highs.
EUR/GBP is benefiting in the wake of a favoured Euro while the dollar has been punished due to the job disappointing numbers. However, bulls might be cautious in the EUR/GBP here and as Gareth Berry at UBS puts it. “…we believe downside in the cross remains the favoured channel to express a cautious view on the effectiveness of the BoE's forward guidance. On a 3m basis GBP remains the best-positioned currency in G10”.
EUR/GBP levels
The 20 DMA .8534, 50 DMA is .8590, the 200 DMA is .8487. RSI (14) reads 49.56. Supports are ascending from .8326, .8355, .8364, .8392. Spot is currently .8430 while resistances are .8466, .8488 and .8505. “Longer term the market has reversed from the top of a 4 year channel and longer term downside targets of 0.8280/0.8155/0.7980 have been introduced (Fibonacci retracements of the move up from 2012)” – Karen Jones, Chief Analyst at Commerzbank.
EUR/GBP is benefiting in the wake of a favoured Euro while the dollar has been punished due to the job disappointing numbers. However, bulls might be cautious in the EUR/GBP here and as Gareth Berry at UBS puts it. “…we believe downside in the cross remains the favoured channel to express a cautious view on the effectiveness of the BoE's forward guidance. On a 3m basis GBP remains the best-positioned currency in G10”.
EUR/GBP levels
The 20 DMA .8534, 50 DMA is .8590, the 200 DMA is .8487. RSI (14) reads 49.56. Supports are ascending from .8326, .8355, .8364, .8392. Spot is currently .8430 while resistances are .8466, .8488 and .8505. “Longer term the market has reversed from the top of a 4 year channel and longer term downside targets of 0.8280/0.8155/0.7980 have been introduced (Fibonacci retracements of the move up from 2012)” – Karen Jones, Chief Analyst at Commerzbank.