23 Oct 2013
EUR/GBP takes out the 3 month pivot
FXstreet.com (London) - EURGBP has taken out the 3 month pivot at 0.8510 ahead of GDP from the UK on Friday.
EUR/GBP had initial results of the ECB bank stress test results overnight, but, as research teams at TD Securities pointed out, the only real take away is that they may take much longer than expected, up to another year. The research teams also noted that the, “BoE minutes revealed a fairly upbeat tone from the MPC, although comments seem more anecdotal and are not likely to see a substantial improvement in UK forecasts. Regardless though, GBPUSD was more concerned with the broader moves in the FX space overnight, which resulted in a sharp retracement lower for the pair. On the charts, the move is notable in that it topped out at the high set earlier in October at 1.6257 marking a potential double top on the short term charts. A bearish sign that suggests the potential for a move of at least two more big figures lower”.
EUR/GBP Levels
The 20 DMA is 0.8439, the 50 DMA is 0.8464 and the 200 DMA is 0.8532. RSI (14) reads 68.48. Supports are ascending from 0.8376, 0.8395, 0.8425, 0.8443 and 0.8490/00. Spot is currently 0.8510 while resistances are 0.8532, 0.8572 and 0.8594.
EUR/GBP had initial results of the ECB bank stress test results overnight, but, as research teams at TD Securities pointed out, the only real take away is that they may take much longer than expected, up to another year. The research teams also noted that the, “BoE minutes revealed a fairly upbeat tone from the MPC, although comments seem more anecdotal and are not likely to see a substantial improvement in UK forecasts. Regardless though, GBPUSD was more concerned with the broader moves in the FX space overnight, which resulted in a sharp retracement lower for the pair. On the charts, the move is notable in that it topped out at the high set earlier in October at 1.6257 marking a potential double top on the short term charts. A bearish sign that suggests the potential for a move of at least two more big figures lower”.
EUR/GBP Levels
The 20 DMA is 0.8439, the 50 DMA is 0.8464 and the 200 DMA is 0.8532. RSI (14) reads 68.48. Supports are ascending from 0.8376, 0.8395, 0.8425, 0.8443 and 0.8490/00. Spot is currently 0.8510 while resistances are 0.8532, 0.8572 and 0.8594.