6 Nov 2013
EUR/GBP pares its earlier sharp loses
FXstreet.com (Athens) – The EUR/GBP managed to pare all of its immense losses, after having touched a one month-low on solid UK data, thus is hovering again near 0.8400 handle.
Market participants might be taken aback by the fact that the EUR/GBP managed to trim all of its losses. Briefly, while the cross was pierced well below the 0.8380 area (touched a one month-low as of 0.8377) as the pound got a solid support by the 1.2% gain in UK manufacturing output, the pair is now moving at the opening level of the early Asian trading session (near 0.8400 handle). It might be considered that maybe to a large or small extent, the pound kept its gains, as the focus is now on major key events including tomorrow’s ECB’S, BoE’s meetings, alongside with next week’s inflation report.
Technical Perspective on the EUR/GBP
The cross should probably overcome the barrier as of 0.8428 (23.8% of the Fibonacci retracement of the 0.8585-0.8379 area) in order to move higher to the 38.2% Fibonacci level of 0.8457. In such a scenario the cross might manage to climb higher near the 0.8585 highs from 29st October. If the pair breaks below 0.8377, next supports could be found at 0.8365 (Oct 3 low) and 0.8350 (Sep 18 low).
Market participants might be taken aback by the fact that the EUR/GBP managed to trim all of its losses. Briefly, while the cross was pierced well below the 0.8380 area (touched a one month-low as of 0.8377) as the pound got a solid support by the 1.2% gain in UK manufacturing output, the pair is now moving at the opening level of the early Asian trading session (near 0.8400 handle). It might be considered that maybe to a large or small extent, the pound kept its gains, as the focus is now on major key events including tomorrow’s ECB’S, BoE’s meetings, alongside with next week’s inflation report.
Technical Perspective on the EUR/GBP
The cross should probably overcome the barrier as of 0.8428 (23.8% of the Fibonacci retracement of the 0.8585-0.8379 area) in order to move higher to the 38.2% Fibonacci level of 0.8457. In such a scenario the cross might manage to climb higher near the 0.8585 highs from 29st October. If the pair breaks below 0.8377, next supports could be found at 0.8365 (Oct 3 low) and 0.8350 (Sep 18 low).