FXStreet (Mumbai) – The EUR/GBP pair appears poised for its first quarterly gain in nine quarters and its best performance since September 2010.
Hovers around weekly 50-MA
The EUR/GBP pair currently trades around its weekly 50-MA located at 0.7400 levels. The pair bottomed out at 0.6930 in July, before resuming a technical recovery, which got extended to a high of 0.7436 on Tuesday as the UK economy showed signs of a slowdown.
Sterling also suffered due to the drop in the BOE rate hike bets; especially after the Fed’s non-committal stance spooked markets and led to a drop in the Fed rate hike bets. Moreover, the markets believe the BOE would hike rates only after the Fed does.
EUR/GBP Technical Levels
The immediate support is seen at 0.7380 (hourly 100-MA), under which the pair could drop to 0.7318 (5-WMA). On the other side, resistance is seen at 0.7436 (Tuesday’s high) and 0.7483 (May 7 high).
(Market News Provided by FXstreet)