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8 Oct 2013
EUR/GBP consolidated or constructive?
FXstreet.com (London) - EUR/GBP is building some signals that appear to offer a bearish bias, treading along 0.8440 ahead of 0.8433 support.
From the calendar, the firmest RICS since Nov 2009 came in with rising prices reported pretty much across the country but interesting that better data (note the price action post last weeks Services PMI) is starting to have less of a marginal impact on sterling. EUR.GBP continues to hold. However, research team at RBS commented, “The risks for EUR/GBP are skewed to a higher EUR/GBP rate, in our view. The ECB appears to be taking a hard currency approach, having missed several opportunities to talk the currency down last week, as well as stressing capital raising over ECB liquidity. Meanwhile markets will be looking ahead to see if there will be a chance of any surprises from the BoE. It is unexpected as the MPC has voted unanimously in each of the past three months, with no members making the case for further stimulus in September.
EUR/GBP Levels
The 20 DMA us 0.8406, the 50 DMA is 0.8504 and the 200 DMA is 0.8516. RSI (14) reads 37.10. Supports are ascending from 0.8333, 0.8368 and 0.8382. Spot is currently 0.8440. Resistances are from 0.8459, 0.8488, 0.8505 and 0.8520.
From the calendar, the firmest RICS since Nov 2009 came in with rising prices reported pretty much across the country but interesting that better data (note the price action post last weeks Services PMI) is starting to have less of a marginal impact on sterling. EUR.GBP continues to hold. However, research team at RBS commented, “The risks for EUR/GBP are skewed to a higher EUR/GBP rate, in our view. The ECB appears to be taking a hard currency approach, having missed several opportunities to talk the currency down last week, as well as stressing capital raising over ECB liquidity. Meanwhile markets will be looking ahead to see if there will be a chance of any surprises from the BoE. It is unexpected as the MPC has voted unanimously in each of the past three months, with no members making the case for further stimulus in September.
EUR/GBP Levels
The 20 DMA us 0.8406, the 50 DMA is 0.8504 and the 200 DMA is 0.8516. RSI (14) reads 37.10. Supports are ascending from 0.8333, 0.8368 and 0.8382. Spot is currently 0.8440. Resistances are from 0.8459, 0.8488, 0.8505 and 0.8520.