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3 Mar 2014
EUR/GBP - now we know who is riskier
FXStreet (Moscow) - EUR/GBP slid to 0.8231 on Monday open, and continued the move lower to 0.8225 session low initially, but soon recovered to 0.8235 area.
ECB vs. BOE
The fact that the pair opened Monday with a gap lower only supports the understanding that GBP is the healthier one out of two. Despite the pair was fueled by the change in the ECB monetary policy expectations due to Friday’s stronger than expected CPI numbers, it supported only short-term demand on the euro. However, the market still understands the big gap between the ECB and the BOE monetary stance, thus the slide may resume in the nearest future, especially backed with better than expected UK PMI data. If so, wait for the move down with initial target at 0.8199support level.
What are today’s key EUR/GBP levels?
Today's central pivot point can be found at 0.8234 with support below at 0.8199, 0.8155 and 0.8120, with resistance above at 0.8278, 0.8313, and 0.8357. Hourly Moving Averages are mixed, with the 200SMA bearish at 0.8235 and the daily 20EMA flat at 0.8244. Hourly RSI is neutral at 48.
ECB vs. BOE
The fact that the pair opened Monday with a gap lower only supports the understanding that GBP is the healthier one out of two. Despite the pair was fueled by the change in the ECB monetary policy expectations due to Friday’s stronger than expected CPI numbers, it supported only short-term demand on the euro. However, the market still understands the big gap between the ECB and the BOE monetary stance, thus the slide may resume in the nearest future, especially backed with better than expected UK PMI data. If so, wait for the move down with initial target at 0.8199support level.
What are today’s key EUR/GBP levels?
Today's central pivot point can be found at 0.8234 with support below at 0.8199, 0.8155 and 0.8120, with resistance above at 0.8278, 0.8313, and 0.8357. Hourly Moving Averages are mixed, with the 200SMA bearish at 0.8235 and the daily 20EMA flat at 0.8244. Hourly RSI is neutral at 48.