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14 May 2015
EUR/GBP consolidates above 0.7200
FXStreet (Edinburgh) - Scarce volatility in both the euro and the sterling is taking EUR/GBP to a sideline pattern around 0.7215/20 on Thursday.
EUR/GBP testing 3-day tops
The cross is advancing for the third consecutive session so far, recovering ground after yesterday’s drop to the 0.7120 area. Poor results in the US docket on Wednesday gave further legs to EUR and GBP, although a dovish tone from the BoE’s Quarterly Inflation Report hurt the pound and allowed the subsequent recovery in the cross.
In the view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, “Rallies will find initial resistance at .7318 and are expected to remain capped now by the .7487 top of the channel”.
EUR/GBP relevant levels
At the moment the cross is up 0.05% at 0.7218 and a break above 0.7242 (21-d MA) would aim for 0.7252 (daily cloud base) and then 0.7257 (high May 11). On the downside, the immediate support lies at 0.7123 (low May 13) followed by 0.7118 (low Apr.23) and then 0.7100 (psychological level).
EUR/GBP testing 3-day tops
The cross is advancing for the third consecutive session so far, recovering ground after yesterday’s drop to the 0.7120 area. Poor results in the US docket on Wednesday gave further legs to EUR and GBP, although a dovish tone from the BoE’s Quarterly Inflation Report hurt the pound and allowed the subsequent recovery in the cross.
In the view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, “Rallies will find initial resistance at .7318 and are expected to remain capped now by the .7487 top of the channel”.
EUR/GBP relevant levels
At the moment the cross is up 0.05% at 0.7218 and a break above 0.7242 (21-d MA) would aim for 0.7252 (daily cloud base) and then 0.7257 (high May 11). On the downside, the immediate support lies at 0.7123 (low May 13) followed by 0.7118 (low Apr.23) and then 0.7100 (psychological level).