5 Jan 2016
EUR/GBP: neutral tone in consolidation
FXStreet (Guatemala) - EUR/GBP recoveries lack conviction with the cross caught in a strong supply chain from above the 0.74 handle on the short-term charts. However, this is all in consolidation of the uptrend from 0.7007 early Dec lows.
The recovery stemmed from the ECB disappointing the markets and while investors set back timing expectations of a rate hike from the BoE. The year has started out volatile and the greenback is king, exposing the downside in both sterling and the euro leaving a neutral outlook for the cross short-term.
EUR/GBP levels
Technically, Karen Jones, chief analyst at Commerzbank explained that the intraday Elliott wave counts are contradictory (currently the market is holding the 200 day ma at 7205). "Major resistance is not encountered until the 2013-2015 downtrend at 0.7450, where we expect to see failure. We will maintain our longer term bearish view while capped here"
The recovery stemmed from the ECB disappointing the markets and while investors set back timing expectations of a rate hike from the BoE. The year has started out volatile and the greenback is king, exposing the downside in both sterling and the euro leaving a neutral outlook for the cross short-term.
EUR/GBP levels
Technically, Karen Jones, chief analyst at Commerzbank explained that the intraday Elliott wave counts are contradictory (currently the market is holding the 200 day ma at 7205). "Major resistance is not encountered until the 2013-2015 downtrend at 0.7450, where we expect to see failure. We will maintain our longer term bearish view while capped here"