FXStreet (Guatemala) – EUR/GBP is currently trading at 0.7237 with a high of 0.7258 and a low of 0.7196.
EUR/GBP remains better offered and the weight of the ECB’s asset purchases programme has been keeping the cross capped on the upside while the past week has been kind to Sterling after the trigger point that was Carney’s Mansion house speech. The cross has dropped back from the 0.74 handle and bears are, so far, held up at 0.7200 support.
EUR/GBP below key 55D MA
Technically, the slide back lower has reached the 55 day ma at 0.7241 and loer which indicates that we could be on the way to 0.7127/23 (Fibo + 22nd April low), as noted by Karen Jones, chief analyst at Commerzbank. “Resistance at 0.7391 is regarded as the last defence for the 0.7482 May peak. We will neutralise our outlook for now as the move feels somewhat directional. Above 0.7482 will introduce potential to the 0.7685/94, the 38.2% retracement of the move down from 2013 and the 55 week ma.”
(Market News Provided by FXstreet)