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28 Jul 2015
EUR/GBP capped but finds key support
FXStreet (Guatemala) - EUR/GBP is currently trading at 0.7080 with a high of 0.7132 and a low of 0.7071.
EUR/GBP is supported currently on 0.7070 after the slide from 0.7160 on yesterday's business with the extension of supply coming in at the bears strong hold at 0.7120. The cross has been resisting the uptrend from below 0.6950 that commenced on the 20th of July on four waves.
The euro has garnered support as a funding currency while markets search for safer havens away from China and risk of the EZ over the Greek debacle. However, there is growing optimism in the UK economy and economists are speculating that a rate hike could come from the BoE==<==/a> as soon as November, which makes the 6th of August MPC one to watch.
The data from the UK today was key, with the preliminary UK's GDP report coming in line with expectations. Analysts at TD Securities offered their thoughts, "UK GDP met expectations for a 0.7% q/q gain in Q2. Details were strong across services while production was more mixed as a surge in mining/quarrying masked a contraction in manufacturing while construction was flat. Overall, we still view this as consistent with BOE hiking early next year"
EUR/GBP is technically escaping from y year channel base
Technically, EUR/GBP is correcting higher short term having recently sold off to the base of a 6 year channel at 0.6967 as Karen Jones, chief analyst at Commerzbank noted. "We are now seeing a robust rebound from here. The market has eroded the short term downtrend at 0.7129, but has yet to close above here and may consolidate ahead of a move to the .7216 2015 downtrend. The base of the 0.6967 6 year down channel was our medium downside target and this together with the recent low at 0.6937 provide key support. This is the break down point to the .6571/41 the 2007 low."
EUR/GBP is supported currently on 0.7070 after the slide from 0.7160 on yesterday's business with the extension of supply coming in at the bears strong hold at 0.7120. The cross has been resisting the uptrend from below 0.6950 that commenced on the 20th of July on four waves.
The euro has garnered support as a funding currency while markets search for safer havens away from China and risk of the EZ over the Greek debacle. However, there is growing optimism in the UK economy and economists are speculating that a rate hike could come from the BoE==<==/a> as soon as November, which makes the 6th of August MPC one to watch.
The data from the UK today was key, with the preliminary UK's GDP report coming in line with expectations. Analysts at TD Securities offered their thoughts, "UK GDP met expectations for a 0.7% q/q gain in Q2. Details were strong across services while production was more mixed as a surge in mining/quarrying masked a contraction in manufacturing while construction was flat. Overall, we still view this as consistent with BOE hiking early next year"
EUR/GBP is technically escaping from y year channel base
Technically, EUR/GBP is correcting higher short term having recently sold off to the base of a 6 year channel at 0.6967 as Karen Jones, chief analyst at Commerzbank noted. "We are now seeing a robust rebound from here. The market has eroded the short term downtrend at 0.7129, but has yet to close above here and may consolidate ahead of a move to the .7216 2015 downtrend. The base of the 0.6967 6 year down channel was our medium downside target and this together with the recent low at 0.6937 provide key support. This is the break down point to the .6571/41 the 2007 low."