9 Mar 2015
EUR/GBP: Breaching key October 1998 high
FXStreet (Guatemala) - EUR/GBP is currently trading at 0.7176 with a high of 0.7219 and a low of 0.7175.
EUR/GBP is still trading with a heavily bearish tone on both the short term and medium term charts. while below 0.7420, the price action has been one way, to the downside. With the divergence between the BoE and ECB, the pound weighs on the cross and will continue doing so while there is speculation that the BoE will at some stage need to revisit its policy arrangements and become hawkish, while there have already been some hawkish rhetoric coming from the Governor himself.
Karen Jones, chief analyst at Commerzbank noted that the recent sell off has bought in the 0.7187 October 1998 high. she explained that it is possible that this will provoke a small rebound, but any breach of this support will trigger another leg lower to 0.7020/00 April 2006 high and psychological level. "The market will remain directly offered below the 0.7271 accelerated resistance line and will need to overcome this level to alleviate immediate downside pressure. Above the 0.7271 accelerated downtrend lies the 23.6% retracement of the down move at 0.7345."
EUR/GBP is still trading with a heavily bearish tone on both the short term and medium term charts. while below 0.7420, the price action has been one way, to the downside. With the divergence between the BoE and ECB, the pound weighs on the cross and will continue doing so while there is speculation that the BoE will at some stage need to revisit its policy arrangements and become hawkish, while there have already been some hawkish rhetoric coming from the Governor himself.
Karen Jones, chief analyst at Commerzbank noted that the recent sell off has bought in the 0.7187 October 1998 high. she explained that it is possible that this will provoke a small rebound, but any breach of this support will trigger another leg lower to 0.7020/00 April 2006 high and psychological level. "The market will remain directly offered below the 0.7271 accelerated resistance line and will need to overcome this level to alleviate immediate downside pressure. Above the 0.7271 accelerated downtrend lies the 23.6% retracement of the down move at 0.7345."