5 Sep 2013
EUR/GBP hits the snooze button
FXstreet.com (Athens) -The EUR/GBP did move nowhere after ECB, still hovering at the same level.
EUR/GBP trading nearly its daily opening level as ECB rate decision didn’t catch traders off guard
The EUR/GBP didn’t react at the announcement that “ECB leaves rates unchanged at 0.50%”, as was widely expected. However, was will be of great importance and might have an impact on the pair, will be what Draghi will say and how hard he leans against the rise in short-term European rates. Earlier, the Bank of England left monetary policy unchanged with Bank Rate kept at 0.5% and the size of the Asset Purchase Facility maintained at £375bn. As soon as BoE announcement was released, the pair spiked very near to a new daily low, as the ‘sterling’ strengthened across the board. What’s more, the BoE announcement revealed that the Central Bank of England “ will reinvest 1.9GBP of the maturing gilts.”
Technical Outlook on EUR/GBP
At the time of writing the pair is trading at 0.8439, down 0.16%. Technically speaking, a decent daily break below 0.8487 (61.8% Fib) will expose the 0.8448 (76.4% Fib) as the next objective, while a reversal back above 0.8487 on a daily closing basis targets 0.8518 (50% Fib expansion). The FXstreet.com Trend Index shows the pair to be stongly bearish in a 15-minutes time framework. Daily pivot point support can be found at 0.8420, 0.8395, 0.8374, and resistance at 0.8600, 0.8622, 0.8698 respectively.
EUR/GBP trading nearly its daily opening level as ECB rate decision didn’t catch traders off guard
The EUR/GBP didn’t react at the announcement that “ECB leaves rates unchanged at 0.50%”, as was widely expected. However, was will be of great importance and might have an impact on the pair, will be what Draghi will say and how hard he leans against the rise in short-term European rates. Earlier, the Bank of England left monetary policy unchanged with Bank Rate kept at 0.5% and the size of the Asset Purchase Facility maintained at £375bn. As soon as BoE announcement was released, the pair spiked very near to a new daily low, as the ‘sterling’ strengthened across the board. What’s more, the BoE announcement revealed that the Central Bank of England “ will reinvest 1.9GBP of the maturing gilts.”
Technical Outlook on EUR/GBP
At the time of writing the pair is trading at 0.8439, down 0.16%. Technically speaking, a decent daily break below 0.8487 (61.8% Fib) will expose the 0.8448 (76.4% Fib) as the next objective, while a reversal back above 0.8487 on a daily closing basis targets 0.8518 (50% Fib expansion). The FXstreet.com Trend Index shows the pair to be stongly bearish in a 15-minutes time framework. Daily pivot point support can be found at 0.8420, 0.8395, 0.8374, and resistance at 0.8600, 0.8622, 0.8698 respectively.