9 May 2014
EUR/GBP is digging through 0.8170 support
FXStreet (Moscow) - EUR/GBP started the day at 0.8173, and slid to 0.8165 session low trying to break below strong support at 0.8170/60 area.
When 0.82 is broken…
The pair finally broke below the 0.82 support level, and may stay there for some time, given the divergence of the BOE and the ECB monetary policy direction. Recent comment from Draghi confirmed the market the additional easing is still on the table. Now the investors may start pricing in the higher chances of rate cut at the nearest ECB meeting scheduled on June, 5. Thus, the neutral stance of the BOE in this case will be GBP-positive, and any strong reading from the UK will be perceived as another argument in favor the BOE tightening coming soon. The nearest target to the downside is at 0.8143 followed by 0.8114.
What are today’s key EUR/GBP levels?
Today's central pivot point can be found at 0.8197, with support below at 0.8143, 0.8114 and 0.8080, with resistance above 0.8226, 0.8280, and 0.8309. Hourly Moving Averages are largely bearish, with the 200SMA at 0.8213 and the daily 20EMA flat at 0.8226. Hourly RSI is bearish at 36.
When 0.82 is broken…
The pair finally broke below the 0.82 support level, and may stay there for some time, given the divergence of the BOE and the ECB monetary policy direction. Recent comment from Draghi confirmed the market the additional easing is still on the table. Now the investors may start pricing in the higher chances of rate cut at the nearest ECB meeting scheduled on June, 5. Thus, the neutral stance of the BOE in this case will be GBP-positive, and any strong reading from the UK will be perceived as another argument in favor the BOE tightening coming soon. The nearest target to the downside is at 0.8143 followed by 0.8114.
What are today’s key EUR/GBP levels?
Today's central pivot point can be found at 0.8197, with support below at 0.8143, 0.8114 and 0.8080, with resistance above 0.8226, 0.8280, and 0.8309. Hourly Moving Averages are largely bearish, with the 200SMA at 0.8213 and the daily 20EMA flat at 0.8226. Hourly RSI is bearish at 36.