13 Feb 2015
Outlook still bearish on EUR/GBP – TDS
FXStreet (Edinburgh) - Shaun Osborne, Chief FX Strategist at TD Securities, keeps the bearish perspective around the European cross.
Key Quotes
“EURGBP retains a negative technical bias, with the late January/early February consolidation (bear flag) yielding only limited gains before new lows were reached, as we expected”.
“Intraday losses below 0.7407 today have not stuck but there is little to suggest a significant bounce is unfolding here”.
“The negative alignment of trend momentum oscillators across short, medium and longer-term timeframes suggests limited scope for EUR gains and ongoing pressure on the downside”.
“We continue to think that EURGBP’s break below major support at 0.77/0.78 late last year points to a near-term drop to 0.73 and, eventually, a return to a 0.65/0.70 range”.
Key Quotes
“EURGBP retains a negative technical bias, with the late January/early February consolidation (bear flag) yielding only limited gains before new lows were reached, as we expected”.
“Intraday losses below 0.7407 today have not stuck but there is little to suggest a significant bounce is unfolding here”.
“The negative alignment of trend momentum oscillators across short, medium and longer-term timeframes suggests limited scope for EUR gains and ongoing pressure on the downside”.
“We continue to think that EURGBP’s break below major support at 0.77/0.78 late last year points to a near-term drop to 0.73 and, eventually, a return to a 0.65/0.70 range”.