11 Feb 2016
EUR/GBP trims gains, but stays at one-year highs
The EUR/GBP pair backed off from 0.7874 levels but remains around 0.7830; its highest level in one-year.
GBP recovers
The selling in GBP appears to have stalled, opening doors for a minor correction in the EUR/GBP pair. British Pound came under pressure due to a 500 pip drop in the GBP/JPY pair. Furthermore, the UK 10-yr Gilt yield also hit a record low and weighed over Pound.
However, the demand for EUR remains intact on account of the carry-unwind triggered by the risk-off in the European equities.
EUR/GBP Technical Levels
The immediate hurdle is seen at 0.7874 (daily high), which if taken out shall see the pair test the psychological level of 0.79. On the other hand, a breakdown of 0.78 could see the cross re-test the previous cyclical high of 0.7755 (Jan 20 high).
GBP recovers
The selling in GBP appears to have stalled, opening doors for a minor correction in the EUR/GBP pair. British Pound came under pressure due to a 500 pip drop in the GBP/JPY pair. Furthermore, the UK 10-yr Gilt yield also hit a record low and weighed over Pound.
However, the demand for EUR remains intact on account of the carry-unwind triggered by the risk-off in the European equities.
EUR/GBP Technical Levels
The immediate hurdle is seen at 0.7874 (daily high), which if taken out shall see the pair test the psychological level of 0.79. On the other hand, a breakdown of 0.78 could see the cross re-test the previous cyclical high of 0.7755 (Jan 20 high).