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22 May 2014
EUR/GBP has headed to the South
FXStreet (Moscow) - EUR/GBP dipped to 0.8087 as GBP/USD tries to recover from its Asian lows. New downside might be in store if the cross passes through the first support of 0.8080
EUR/GBP did it!
Strong data out of the UK helped the pair to finally break below 0.81 area and continue the move down. The growing divergence between the two European economies continue to support the slide of EUR/GBP, as the market is now more convinced the ECB will significantly lag the BOE in the pursue for tightening. The released today economic data out of the EMU and UK may only convince the market in selling, though short-term corrective moves are not ruled out.
What price levels and patterns have to be considered?
Current price is 0.8089, with resistance ahead at 0.8094 (Weekly Classic S2), 0.8098 (Monthly Low), 0.8098 (Weekly Low), 0.8098 (Annual Low) and 0.8099 (Daily Open).
To the downside we see next support at 0.8087 (Daily Low), 0.8085 (Yesterday's Low), 0.8073 (Daily Classic S1), 0.8061 (Weekly Classic S3) and 0.8047 (Daily Classic S2).
Regarding candlestick formations, we can see Dark Cloud Cover and Engulfing Bearish formation on the 1-hour and a Hammer formation on the 4-hour chart.
EUR/GBP did it!
Strong data out of the UK helped the pair to finally break below 0.81 area and continue the move down. The growing divergence between the two European economies continue to support the slide of EUR/GBP, as the market is now more convinced the ECB will significantly lag the BOE in the pursue for tightening. The released today economic data out of the EMU and UK may only convince the market in selling, though short-term corrective moves are not ruled out.
What price levels and patterns have to be considered?
Current price is 0.8089, with resistance ahead at 0.8094 (Weekly Classic S2), 0.8098 (Monthly Low), 0.8098 (Weekly Low), 0.8098 (Annual Low) and 0.8099 (Daily Open).
To the downside we see next support at 0.8087 (Daily Low), 0.8085 (Yesterday's Low), 0.8073 (Daily Classic S1), 0.8061 (Weekly Classic S3) and 0.8047 (Daily Classic S2).
Regarding candlestick formations, we can see Dark Cloud Cover and Engulfing Bearish formation on the 1-hour and a Hammer formation on the 4-hour chart.