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17 Mar 2015
EUR/GBP: Bearish below 0.7185, as correction is capped on 0.7200
FXStreet (Guatemala) - EUR/GBP is currently trading 0.7183 with a high of 0.7216 and low of 0.7119.
EUR/GBP has been testing the downside on 0.7180 support having left the vicinity of the 0.72 handle post the minor recovery from 0.7120 level. The correction from 0.7010's support line marks 0.7120 as a highly key support area and will come under threat with a break of the 0.7150 level, putting the correction into jeopardy and will put the bear back in control of the January commencing downtrend from the 0.78 handle.
Meanwhile, the FOMC is the key event on the cards this week and could put the cross under pressure should the markets start to price in any new forward guidance as to timings of the first rate hike from the Fed, weighing on the euro in respect of the divergences between the BoE , ECB and Fed. Technically, Karen Jones, chief analyst at Commerzbank is bearish at the moment, and said, "The market will remain directly offered below the 0.7185 accelerated resistance line and will need to overcome this level to alleviate immediate downside pressure."
EUR/GBP has been testing the downside on 0.7180 support having left the vicinity of the 0.72 handle post the minor recovery from 0.7120 level. The correction from 0.7010's support line marks 0.7120 as a highly key support area and will come under threat with a break of the 0.7150 level, putting the correction into jeopardy and will put the bear back in control of the January commencing downtrend from the 0.78 handle.
Meanwhile, the FOMC is the key event on the cards this week and could put the cross under pressure should the markets start to price in any new forward guidance as to timings of the first rate hike from the Fed, weighing on the euro in respect of the divergences between the BoE , ECB and Fed. Technically, Karen Jones, chief analyst at Commerzbank is bearish at the moment, and said, "The market will remain directly offered below the 0.7185 accelerated resistance line and will need to overcome this level to alleviate immediate downside pressure."