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28 Mar 2014
EUR/GBP is on the way to new lows
FXStreet (Moscow) - EUR/GBP was more dead than alive showing 9-pip moves in the morning, but the broad euro weakness helped the pair slid to 0.8246 low.
The choice is simple
The pair stumbled near 0.8270 support area in the morning, the further slide lower was just the matter of time. The weak data from the EMU proving still low inflationary pressure in the region fueled the selloff, with the pair posting 3-week low at 0.8246. Now the choice between two European currencies is practically obvious, and this gives a good opportunity to trade on that. While the euro is under pressure of the ECB dovish stance, the pound is supported by positive comments from the BOE officials, and by really positive fundamentals. The picture will hardly be changed in near term, thus, the pair has good downside potential with initial target at 0.8224, when 0.8248 support level is broken.
What are today’s key EUR/GBP levels?
Today's central pivot point can be found at 0.8286 with support below at 0.8248, 0.8224 and 0.8186, with resistance above at 0.8310, 0.8348, and 0.8372. Hourly Moving Averages are largely bearish, with the 200SMA at 0.8352 and the daily 20EMA flat at 0.8323. Hourly RSI is neutral at 35.
The choice is simple
The pair stumbled near 0.8270 support area in the morning, the further slide lower was just the matter of time. The weak data from the EMU proving still low inflationary pressure in the region fueled the selloff, with the pair posting 3-week low at 0.8246. Now the choice between two European currencies is practically obvious, and this gives a good opportunity to trade on that. While the euro is under pressure of the ECB dovish stance, the pound is supported by positive comments from the BOE officials, and by really positive fundamentals. The picture will hardly be changed in near term, thus, the pair has good downside potential with initial target at 0.8224, when 0.8248 support level is broken.
What are today’s key EUR/GBP levels?
Today's central pivot point can be found at 0.8286 with support below at 0.8248, 0.8224 and 0.8186, with resistance above at 0.8310, 0.8348, and 0.8372. Hourly Moving Averages are largely bearish, with the 200SMA at 0.8352 and the daily 20EMA flat at 0.8323. Hourly RSI is neutral at 35.