17 Aug 2015
EUR/GBP downside remains compelling
FXStreet (Guatemala) - EUR/GBP is currently trading 0.7100 with a high of 0.7114 and a low of 0.7064.
EUR/GBP is trading in a historically familiar zone around the 0.7100 level, while bulls were unable to achieve much higher than the 0.7160 level on a double top last week. Subsequent supply took the cross down through the 0.71 level but demand came in at the ear-marked 0.7080 support zone where the pair is recovering from today to oscillate at current levels.
There has been a case building for a UK rate hike which underpins the downside in the cross. Over the weekend, BoE's Forbes said that a rate hike would be needed even before the 2% inflation target is met and that the correct timing of such a move would be dependent on further evidence that prices are on course.
Data wise, for the week, tomorrow is a major highlight for the pound with plenty of events including CPI's in the UK. In respect to the euro, there are a number of second tier events. However, price will be driven through the greenback in the main this week based upon the FOMC minutes and US CPI's.
EUR/GBP levels
Technically, EUR/GBP remains offered below the 2015 downtrend at 0.7176 while the recent rally, as explained by Karen Jones, chief analyst at Commerzbank, was nothing more than an a-b-c correction. However, she warns that 0.7223 could be back on the map. On the other hand, to the downside, she explained a slip back below Tuesday’s low at 0.7040 would trigger losses to the 0.6990 June low.
EUR/GBP is trading in a historically familiar zone around the 0.7100 level, while bulls were unable to achieve much higher than the 0.7160 level on a double top last week. Subsequent supply took the cross down through the 0.71 level but demand came in at the ear-marked 0.7080 support zone where the pair is recovering from today to oscillate at current levels.
There has been a case building for a UK rate hike which underpins the downside in the cross. Over the weekend, BoE's Forbes said that a rate hike would be needed even before the 2% inflation target is met and that the correct timing of such a move would be dependent on further evidence that prices are on course.
Data wise, for the week, tomorrow is a major highlight for the pound with plenty of events including CPI's in the UK. In respect to the euro, there are a number of second tier events. However, price will be driven through the greenback in the main this week based upon the FOMC minutes and US CPI's.
EUR/GBP levels
Technically, EUR/GBP remains offered below the 2015 downtrend at 0.7176 while the recent rally, as explained by Karen Jones, chief analyst at Commerzbank, was nothing more than an a-b-c correction. However, she warns that 0.7223 could be back on the map. On the other hand, to the downside, she explained a slip back below Tuesday’s low at 0.7040 would trigger losses to the 0.6990 June low.