19 Jan 2016
EUR/GBP keeps moving lower, German data ignored
FXStreet (Mumbai) - The EUR/GBP keeps moving lower, now trading around 0.76 handle as investors ignored final German CPI reading amid uptick in the Asian equities and European equity futures.
Will it break below 0.76?
The Asian equities have responded positive to the Chinese data, while the oil prices have strengthened as well. Hence, the European equities may strengthen, pushing the EUR lower across the board. Thus, the EUR/GBP cross could drop below 0.76 handle.
Whether the pair will suffer significant losses below 0.76 also depends partly on BOE Carney’s speech and UK monthly CPI data.
EUR/GBP Technical Levels
The 5-DMA at 0.7580 is likely to act as a strong support since the pair has repeatedly found bids around the same in last couple of weeks. The 5-DMA stands at 0.7580, under which the pair could to 0.7555 (Jan 11 high). On the other hand, a break above 0.7636 (hourly 50-MA) would open doors for a re-test of 0.7657 (daily high).
Will it break below 0.76?
The Asian equities have responded positive to the Chinese data, while the oil prices have strengthened as well. Hence, the European equities may strengthen, pushing the EUR lower across the board. Thus, the EUR/GBP cross could drop below 0.76 handle.
Whether the pair will suffer significant losses below 0.76 also depends partly on BOE Carney’s speech and UK monthly CPI data.
EUR/GBP Technical Levels
The 5-DMA at 0.7580 is likely to act as a strong support since the pair has repeatedly found bids around the same in last couple of weeks. The 5-DMA stands at 0.7580, under which the pair could to 0.7555 (Jan 11 high). On the other hand, a break above 0.7636 (hourly 50-MA) would open doors for a re-test of 0.7657 (daily high).