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7 Oct 2013
EUR/GBP testing key support
FXstreet.com (London) - EUR/GBP is holding on the 0.8420 support line after opening to the downside on heavy supply at the start of this week’s session.
After topping put on last weeks rally at 0.8480, with a light calendar today, focus is on events later on in the week. 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. The chance of any surprises from the BoE this week appears negligible. We do not expect a statement. The MPC has voted unanimously in each of the past three months, with no members making the case for further stimulus in September. Any more radical changes of view seem more likely to emerge under the cover of the next quarterly Inflation Report in November”.
EUR/GBP Levels
The 20 DMA us 0.8406, the 50 DMA is 0.8509 and the 200 DMA is 0.8515. RSI (14) reads 37.79. Supports are ascending from 0.8333, 0.8368 and 0.8382. Spot is currently 0.8431. Resistances are from 0.8459, 0.8488, 0.8505 and 0.8520.
After topping put on last weeks rally at 0.8480, with a light calendar today, focus is on events later on in the week. 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. The chance of any surprises from the BoE this week appears negligible. We do not expect a statement. The MPC has voted unanimously in each of the past three months, with no members making the case for further stimulus in September. Any more radical changes of view seem more likely to emerge under the cover of the next quarterly Inflation Report in November”.
EUR/GBP Levels
The 20 DMA us 0.8406, the 50 DMA is 0.8509 and the 200 DMA is 0.8515. RSI (14) reads 37.79. Supports are ascending from 0.8333, 0.8368 and 0.8382. Spot is currently 0.8431. Resistances are from 0.8459, 0.8488, 0.8505 and 0.8520.