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6 Sep 2013
EUR/GBP closing down on the week
FXstreet.com (London) - EUR/GBP has drifted towards the pivot this afternoon with resistance slowing the pace right down for the closing hours of the week on a negative basis and a big figure down on the week.
EUR/GBP is suffering from a turn in the EUR/USD, besides the poor NFP’s data. EZ rates markets cannot continue in the fashion of following that of the US and as for Sterling, a boost came this week from a slight improvement in Markit Services PMI earlier in the week and today, industrial and manufacturing production beat expectations albeit only marginally. The BoE offered much of the same low for longer approach as the ECB.
EUR/GBP negative bias
Karen Jones, chief analyst at Commerzbank noted that EUR/GBP has eroded and closed below the 0.8470 June low and 2090 day ma – this is viewed as negative. “Intraday rallies should now remain capped by the .8528 previous 2012-2013 uptrend (this should now act as resistance) and will find initial resistance at .8480/.8500 for another leg down to the 0.8399 2013 low and .8366 the 200 week ma”. She continued to suggest that longer term, the market has reversed from the top of a 4 year channel and longer term targets of 0.8280/0.8155/0.7980 have been introduced (Fibonacci retracements of the move up from 2012).
EUR/GBP is suffering from a turn in the EUR/USD, besides the poor NFP’s data. EZ rates markets cannot continue in the fashion of following that of the US and as for Sterling, a boost came this week from a slight improvement in Markit Services PMI earlier in the week and today, industrial and manufacturing production beat expectations albeit only marginally. The BoE offered much of the same low for longer approach as the ECB.
EUR/GBP negative bias
Karen Jones, chief analyst at Commerzbank noted that EUR/GBP has eroded and closed below the 0.8470 June low and 2090 day ma – this is viewed as negative. “Intraday rallies should now remain capped by the .8528 previous 2012-2013 uptrend (this should now act as resistance) and will find initial resistance at .8480/.8500 for another leg down to the 0.8399 2013 low and .8366 the 200 week ma”. She continued to suggest that longer term, the market has reversed from the top of a 4 year channel and longer term targets of 0.8280/0.8155/0.7980 have been introduced (Fibonacci retracements of the move up from 2012).