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10 Sep 2013
EUR/GBP levelled out at 0.8445/50
FXstreet.com (London) - EUR/GBP has had a good run on the session on Monday, capping at 0.8450 after sealing and exceeding the gap on the charts.
EUR/GBP is benefiting in the wake of a favoured Euro while the dollar has been punished due to the job disappointing numbers. However, bulls might be cautious in the EUR/GBP here and as Mr Berry at UBS puts it. “…we believe downside in the cross remains the favoured channel to express a cautious view on the effectiveness of the BoE's forward guidance. On a 3m basis GBP remains the best-positioned currency in G10”. Sterling on the GBP/USD had seen some modest positiveness from the fact that the BoE policy came without a statement this time around, indicating that the MPC has become more comfortable with the continued rise in market interest rates. The calendar sees German CPI coming up on Wednesday while UK Claimant Count falls in line there after.
EUR/GBP RSI approaching 70
The 20 DMA .8534, 50 DMA is .8590, the 200 DMA is .8487. RSI (14) reads 64.28. Supports are ascending from .8326, .8355, .8364, .8392. Spot is currently .8444 while resistances are .8466, .8488 and .8505. “Longer term the market has reversed from the top of a 4 year channel and longer term downside targets of 0.8280/0.8155/0.7980 have been introduced (Fibonacci retracements of the move up from 2012)” – Karen Jones, Chief Analyst at Commerzbank.
EUR/GBP is benefiting in the wake of a favoured Euro while the dollar has been punished due to the job disappointing numbers. However, bulls might be cautious in the EUR/GBP here and as Mr Berry at UBS puts it. “…we believe downside in the cross remains the favoured channel to express a cautious view on the effectiveness of the BoE's forward guidance. On a 3m basis GBP remains the best-positioned currency in G10”. Sterling on the GBP/USD had seen some modest positiveness from the fact that the BoE policy came without a statement this time around, indicating that the MPC has become more comfortable with the continued rise in market interest rates. The calendar sees German CPI coming up on Wednesday while UK Claimant Count falls in line there after.
EUR/GBP RSI approaching 70
The 20 DMA .8534, 50 DMA is .8590, the 200 DMA is .8487. RSI (14) reads 64.28. Supports are ascending from .8326, .8355, .8364, .8392. Spot is currently .8444 while resistances are .8466, .8488 and .8505. “Longer term the market has reversed from the top of a 4 year channel and longer term downside targets of 0.8280/0.8155/0.7980 have been introduced (Fibonacci retracements of the move up from 2012)” – Karen Jones, Chief Analyst at Commerzbank.