24 Aug 2015
EUR/GBP reaches 0.7400 for the first time since April
FXStreet (Córdoba) - Risk aversion worldwide boosted the yen and also the euro. EUR/GBP rose above 0.7300 during the Asian session and recently broke above 0.7340 (previous daily highs) and jumped to 0.7421, hitting the highest level in four months as stocks extended losses in Europe and in Wall Street.
The pair then pulled back modestly and it was trading at 0.7395, up 375 pips from the level it had a week ago. The euro is rising for the fourth trading day in a row against the pound. Both, EUR/GBP and EUR/USD are trading at multi-month highs, but the euro is rising more robustly.
Eyes on 0.7400
From a technical perspective, it will be import if the pair manages to end the day above 0.7400. The mentioned zone capped the upside during March and also in June; during May it traded momentarily above, before making a strong reversal.
A consolidation on top of 0.7100 could open the doors for further gains, while a rejection could signal a potential short-term top.
The pair then pulled back modestly and it was trading at 0.7395, up 375 pips from the level it had a week ago. The euro is rising for the fourth trading day in a row against the pound. Both, EUR/GBP and EUR/USD are trading at multi-month highs, but the euro is rising more robustly.
Eyes on 0.7400
From a technical perspective, it will be import if the pair manages to end the day above 0.7400. The mentioned zone capped the upside during March and also in June; during May it traded momentarily above, before making a strong reversal.
A consolidation on top of 0.7100 could open the doors for further gains, while a rejection could signal a potential short-term top.