6 Jan 2014
EUR/GBP is moving closer to 0.8307, but there is not enough momentum
FXstreet.com (Moscow) - EUR/GBP managed to move above 0.83 from 0.8286 at the opening, thanks to the recent GBP/USD drop.
The way higher may be thorny
Despite the attempts to test the nearest resistance at 0.8307, the pair is still under pressure due to two key factors affecting the moves: strength of economic UK and euro zone recovery, and the monetary policy outlook. In both cases the Britain outperforms the EMU, thus creating the positive environment for further EUR/GBP depreciation. Should the released today PMI data from both regions supports the market perception, we may see new wave of sell-off with the nearest target at 0.8264 support level.
What are today’s key EUR/GBP levels?
Today's central pivot point can be found at 0.8291 with support below at 0.8264 (S1), 0.8248 (S2) and 0.8221 (S3), with resistance above at 0.8307 (R1), 0.8334 (R2), and 0.8350 (R3). Hourly Moving Averages are mixed, with the 200SMA bearish at 0.8336 and the daily 20EMA bearish at 0.8346. Hourly RSI is neutral at 54.
The way higher may be thorny
Despite the attempts to test the nearest resistance at 0.8307, the pair is still under pressure due to two key factors affecting the moves: strength of economic UK and euro zone recovery, and the monetary policy outlook. In both cases the Britain outperforms the EMU, thus creating the positive environment for further EUR/GBP depreciation. Should the released today PMI data from both regions supports the market perception, we may see new wave of sell-off with the nearest target at 0.8264 support level.
What are today’s key EUR/GBP levels?
Today's central pivot point can be found at 0.8291 with support below at 0.8264 (S1), 0.8248 (S2) and 0.8221 (S3), with resistance above at 0.8307 (R1), 0.8334 (R2), and 0.8350 (R3). Hourly Moving Averages are mixed, with the 200SMA bearish at 0.8336 and the daily 20EMA bearish at 0.8346. Hourly RSI is neutral at 54.