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EUR/GBP sails its way down to 0.8423 session lows

FXstreet.com (Chicago) - EUR/GBP broke the upward trendline after rally from 9-month lows and whipsaw to 0.8437 weekly highs. Still above the EMA20 on hourly chart, bulls hold on to bearish pressure.

Data driven roundtrip?

Ahead of producer price indexes – not much effect on currency pair prices -, market participants finish digesting Europe’s apparent gradual recovery and the pound’s formidable performance this month. Down 0.08%, the pair trades around early week levels after roundtrip to depths ended on euro’s rally after Draghi’s not so dovish comments a couple of days back. Next week, the ECB report is expected along a series of data releases and the BoE interest rate decision for the UK. On previous session, the FTSE 100 was up 0.18% contrary to the CAC 40 down 0.73%, the DAX down 0.37% and the Euronext down 0.55%.

EUR/GBP Technical Levels


Technically speaking, the pair is offered at 0.8424 and oscillates between supports aligned at 0.84 (September 23rd lows), 0.8365 (October 1st highs) ahead of 0.8323 (January 15th highs) and the resistances set at 0.8445 (September 25th highs), 0.8471 (July 3rd lows) followed by 0.85 (August 19th lows). According to the FXstreet.com trend index, the pair is neutral on one-hour timeframe analysis.

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