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11 Mar 2014
EUR/GBP medium term negative bias
FXStreet (Guatemala) - EUR/GBP is sticking to a tight range at the top of the rally hat was made on Thursday last week post ECB keeping rates on hold and offering some renewed scope for the outlook of the EZ economy.
Karen Jones, chief analyst at Commerzbank noted that, on Monday, EUR/GBP shot right through the 2013/14-downtrend line at 0.8313 and retested the 0.8348/49 January/February highs. “While capped here and by Monday’s 0.8350 high, we will maintain our medium term negative bias. The odds favour at least a short-term break higher, though, in which case the 0.8391 late December high could be hit before the currency pair heads back down again. We look for a re-test of the 55 day moving average at 0.8272 and the 0.8253 December low in the first instance.” Her analytical tem went on to explaine that below the 55 DMA lies the 0.8231 January 9 low. “Strong support comes in between the 0.8205 March 5 low and the 0.8159 February low”. They then said, “Once this has given way, the long term Fibonacci support (the 61.8% retracement of the move in 2012-2013) at 0.8160 will be in focus. We remain longer term still negative and failure at 0.8160 will target 0.8000/0.7963. It is the 78.6% retracement of the move up from 2012”.
EUR/GBP Levels
The 20 DMA is 0.8241, the 50 DMA is 0.8263 and the 200 DMA is 0.8428. RSI (14) reads 53.20. Supports are ascending from 0.8245, 0.8259, 0.8270 and 0.8302. Spot is 0.8333 while resistances are 0.8351, 0.8372, 0.8394 and 0.8432.
Karen Jones, chief analyst at Commerzbank noted that, on Monday, EUR/GBP shot right through the 2013/14-downtrend line at 0.8313 and retested the 0.8348/49 January/February highs. “While capped here and by Monday’s 0.8350 high, we will maintain our medium term negative bias. The odds favour at least a short-term break higher, though, in which case the 0.8391 late December high could be hit before the currency pair heads back down again. We look for a re-test of the 55 day moving average at 0.8272 and the 0.8253 December low in the first instance.” Her analytical tem went on to explaine that below the 55 DMA lies the 0.8231 January 9 low. “Strong support comes in between the 0.8205 March 5 low and the 0.8159 February low”. They then said, “Once this has given way, the long term Fibonacci support (the 61.8% retracement of the move in 2012-2013) at 0.8160 will be in focus. We remain longer term still negative and failure at 0.8160 will target 0.8000/0.7963. It is the 78.6% retracement of the move up from 2012”.
EUR/GBP Levels
The 20 DMA is 0.8241, the 50 DMA is 0.8263 and the 200 DMA is 0.8428. RSI (14) reads 53.20. Supports are ascending from 0.8245, 0.8259, 0.8270 and 0.8302. Spot is 0.8333 while resistances are 0.8351, 0.8372, 0.8394 and 0.8432.