16 Oct 2013
EUR/GBP grinds slightly upwards ahead of UK labor data
FXstreet.com (Athens) – The EUR/GBP has been moving mostly upwards since the kick-off of the Asian trading session – apart from the last hour – ahead of crucial UK labor data.
EUR/GBP upwards but if solid UK labor data release later on, cross might come under pressure
The EUR/GBP is heading slightly upwards on Wednesday at a very tight range as the cross sitting on the fence awaiting for the big today’s release on UK labor data. Market participants might be well prepared for a sterling upward break-out, which will ultimately drag the cross downwards as to a large extent UK Jobless claims set to fall further. As a matter of fact, UK jobless claims are expected to contract by another 25.000 in September and taken for granted – that other things equal – this is a positive sterling reading as it raises the UK outlook both in terms of growth and inflation – the EUR/GBP might probably caught under major pressure.
Technical Outlook on EUR/GBP
Axel Rudolph, Head Technical Analyst at Commerzbank suggests that the “EUR/GBP’s correction higher is being capped by the 55- and 200-day moving averages at .8498/.8527. Within this resistance zone the mid-August lows can also be seen. This area should act as tough resistance and we maintain our bearish bias while capped by .8527 on a daily chart closing basis. Failure here will leave focus once more on the .8332 September low. Longer term the market has reversed from the top of a four year channel and longer term downside targets of .8280/.8155/.7980 have been introduced (Fibonacci retracements of the move up from 2012).”
EUR/GBP upwards but if solid UK labor data release later on, cross might come under pressure
The EUR/GBP is heading slightly upwards on Wednesday at a very tight range as the cross sitting on the fence awaiting for the big today’s release on UK labor data. Market participants might be well prepared for a sterling upward break-out, which will ultimately drag the cross downwards as to a large extent UK Jobless claims set to fall further. As a matter of fact, UK jobless claims are expected to contract by another 25.000 in September and taken for granted – that other things equal – this is a positive sterling reading as it raises the UK outlook both in terms of growth and inflation – the EUR/GBP might probably caught under major pressure.
Technical Outlook on EUR/GBP
Axel Rudolph, Head Technical Analyst at Commerzbank suggests that the “EUR/GBP’s correction higher is being capped by the 55- and 200-day moving averages at .8498/.8527. Within this resistance zone the mid-August lows can also be seen. This area should act as tough resistance and we maintain our bearish bias while capped by .8527 on a daily chart closing basis. Failure here will leave focus once more on the .8332 September low. Longer term the market has reversed from the top of a four year channel and longer term downside targets of .8280/.8155/.7980 have been introduced (Fibonacci retracements of the move up from 2012).”