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27 Mar 2014
EUR/GBP oversold?
FXStreet (Guatemala) - EUR/GBP sold off into, what charts are expressing as, oversold status and reaching a low of 0.8266 while the pair had been trading closer to the high, 0.8325.
EUR/GBP dumped when we saw the upside surprise for today’s retail sales data, with ex-fuel sales up 1.8% M/M in Feb (mkt 0.3%). “The details weren’t quite as strong with most of the growth coming from food store sales (+2.1%), but non-food sales more of a mixed bag with internet sales soaring (+7.9%, and kind of odd given the warm weather), but softer numbers for clothing (-0.1%) and household goods (-1.1%). But the overall message is that consumer spending trends in the UK are still looking solid” – explained Jacqui Douglas, Senior Global Strategist, TD Securities.
EUR/GBP bearish outlook
Meanwhile, Karen Jones, chief analyst at Commerzbank, paints a bearish outlook for the cross. “EUR/GBP sold off following its third failure at its 38.2% retracement at 0.8392. Directly overhead lies the .8419 200 day ma and we note the TD perfected set up on the daily chart and the divergence of the daily RSI – all of these factors suggest that the market has topped for now and is likely to remain under pressure”.
EUR/GBP Levels
The 20 DMA is 0.8319, the 50 DMA is 0.8277 and the 200 DMA is 0.8418. RSI (14) reads 44.63. Supports are ascending from 0.8259, 0.8271, 0.8286, 0.8296, 0.8318, 0.8336, 0.8364, 0.8400 and 0.8467.
EUR/GBP dumped when we saw the upside surprise for today’s retail sales data, with ex-fuel sales up 1.8% M/M in Feb (mkt 0.3%). “The details weren’t quite as strong with most of the growth coming from food store sales (+2.1%), but non-food sales more of a mixed bag with internet sales soaring (+7.9%, and kind of odd given the warm weather), but softer numbers for clothing (-0.1%) and household goods (-1.1%). But the overall message is that consumer spending trends in the UK are still looking solid” – explained Jacqui Douglas, Senior Global Strategist, TD Securities.
EUR/GBP bearish outlook
Meanwhile, Karen Jones, chief analyst at Commerzbank, paints a bearish outlook for the cross. “EUR/GBP sold off following its third failure at its 38.2% retracement at 0.8392. Directly overhead lies the .8419 200 day ma and we note the TD perfected set up on the daily chart and the divergence of the daily RSI – all of these factors suggest that the market has topped for now and is likely to remain under pressure”.
EUR/GBP Levels
The 20 DMA is 0.8319, the 50 DMA is 0.8277 and the 200 DMA is 0.8418. RSI (14) reads 44.63. Supports are ascending from 0.8259, 0.8271, 0.8286, 0.8296, 0.8318, 0.8336, 0.8364, 0.8400 and 0.8467.