19 Aug 2015
EUR/GBP: minor recovery lacking conviction, FOMC minutes eyed
FXStreet (Guatemala) - EUR/GBP is currently trading at 0.7072 with a high of 0.7073 and a low of 0.7032.
EUR/GBP has been propelled higher on a stronger euro, which is taking advantage of the US CPI misses. The market is now trading above the resistance of the sideways channel that formed on the back of the slide from above 0.7110 to 0.7020's lows. This is a significant break, but needs to conquer the 0.71 handle to offer any conviction of a recovery.
The UK's own CPI's were strong enough for the market to get behind the pound which has crossed over the 55 DMA and even found territory on the 1.57 handle yesterday, albeit short-lived until supply was attracted there at a strong resistance. Nonetheless, the bias is still very much skewed to the downside in the cross and today we await the FOMC minutes which could weigh on EUR/USD and put a barrier in today's minor recovery attempts in the cross if indeed the minutes point towards a possible hike in September.
EUR/GBP technically bearish
Technically, further upside doesn't carry much significance until the 0.71 handle which then brings in scope for the 2015 downtrend at 0.7167. While trading below these levels, the cross tirades with a bearish bias and upside failures leave the 0.6990 June low exposed. Beyond there we have the July low at 0.6937, and this would be the breakdown point to the 0.6541 2007 low.
EUR/GBP has been propelled higher on a stronger euro, which is taking advantage of the US CPI misses. The market is now trading above the resistance of the sideways channel that formed on the back of the slide from above 0.7110 to 0.7020's lows. This is a significant break, but needs to conquer the 0.71 handle to offer any conviction of a recovery.
The UK's own CPI's were strong enough for the market to get behind the pound which has crossed over the 55 DMA and even found territory on the 1.57 handle yesterday, albeit short-lived until supply was attracted there at a strong resistance. Nonetheless, the bias is still very much skewed to the downside in the cross and today we await the FOMC minutes which could weigh on EUR/USD and put a barrier in today's minor recovery attempts in the cross if indeed the minutes point towards a possible hike in September.
EUR/GBP technically bearish
Technically, further upside doesn't carry much significance until the 0.71 handle which then brings in scope for the 2015 downtrend at 0.7167. While trading below these levels, the cross tirades with a bearish bias and upside failures leave the 0.6990 June low exposed. Beyond there we have the July low at 0.6937, and this would be the breakdown point to the 0.6541 2007 low.