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22 May 2014
EUR/GBP retakes 0.8100
FXStreet (Edinburgh) - Today’s weakness around the sterling and a firmer tone of the euro is allowing the EUR/GBP to regain the key 0.8100 handle.
EUR/GBP stronger after UK data
The cross gained upside momentum after the UK GDP data left no room for surprises, expanding 0.8% inter-quarter and 3.1% on a yearly basis. Further data pointed to a higher number for the Public Sector Net Borrowing in April at £9.631 billion. In the meantime, the single currency remains steady post-PMI prints, showing a mixed tone from the euro area. “We note that the daily RSI is low, but has not reached oversold. Rallies will have no impact whatsoever while capped by .8192/.8203, the end of February low and the 2 month downtrend”, observed Karen Jones, Head of FICC Technical Analysis at Commerzbank.
EUR/GBP levels to watch
As of writing the pair is up 0.11% at 0.8107 with the next hurdle at 0.8143 (high May 21) ahead of 0.8158 (high May 20) and finally 0.8172 (high May 16). On the flip side, a breakdown of 0.8063 (low Dec.12 2012) would aim for 0.8045 (low Dec.11 2012) and then 0.8035 (low Dec.10 2012).
EUR/GBP stronger after UK data
The cross gained upside momentum after the UK GDP data left no room for surprises, expanding 0.8% inter-quarter and 3.1% on a yearly basis. Further data pointed to a higher number for the Public Sector Net Borrowing in April at £9.631 billion. In the meantime, the single currency remains steady post-PMI prints, showing a mixed tone from the euro area. “We note that the daily RSI is low, but has not reached oversold. Rallies will have no impact whatsoever while capped by .8192/.8203, the end of February low and the 2 month downtrend”, observed Karen Jones, Head of FICC Technical Analysis at Commerzbank.
EUR/GBP levels to watch
As of writing the pair is up 0.11% at 0.8107 with the next hurdle at 0.8143 (high May 21) ahead of 0.8158 (high May 20) and finally 0.8172 (high May 16). On the flip side, a breakdown of 0.8063 (low Dec.12 2012) would aim for 0.8045 (low Dec.11 2012) and then 0.8035 (low Dec.10 2012).