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20 May 2014
EUR/GBP finds respite after UK data
FXStreet (Edinburgh) - The intraday decline of the EUR/GBP seems to have found decent support in the 0.8120 area on Tuesday.
EUR/GBP revived after UK CPI
In spite of the bearish tone surrounding the euro, the EUR/GBP is now gathering some traction due to the softer tone in the sterling pots-CPI figures in the UK. Consumer prices in the British economy have surprised to the upside, rising at an annual pace of 1.8% (vs. 1.7% exp.) and 0.4% inter-month (vs. 0.3% exp.). Core prices also came in above estimates at 2.0% over the last twelve months. “The first weekly close below the main support of 0.8150/60, so risk remains lower overall. However, we have not had a clear break. So we need confirmation as the targets are quite far away at 0.8000/20 and potentially into 0.78/0.79 area as well”, noted Paul Robson, FX Senior Strategist at RBS.
EUR/GBP levels to watch
As of writing the cross is retreating 0.30% at 0.8129 with the immediate support at 0.8105 9low Jan.7 2013) ahead of 0.8098 (low Jan.4 2013) and finally 0.8086 (2013 low Jan.3). On the upside, a break above 0.8158 (high May 20) would expose 0.8162 (10-d MA) and then 0.8172 (high May 16).
EUR/GBP revived after UK CPI
In spite of the bearish tone surrounding the euro, the EUR/GBP is now gathering some traction due to the softer tone in the sterling pots-CPI figures in the UK. Consumer prices in the British economy have surprised to the upside, rising at an annual pace of 1.8% (vs. 1.7% exp.) and 0.4% inter-month (vs. 0.3% exp.). Core prices also came in above estimates at 2.0% over the last twelve months. “The first weekly close below the main support of 0.8150/60, so risk remains lower overall. However, we have not had a clear break. So we need confirmation as the targets are quite far away at 0.8000/20 and potentially into 0.78/0.79 area as well”, noted Paul Robson, FX Senior Strategist at RBS.
EUR/GBP levels to watch
As of writing the cross is retreating 0.30% at 0.8129 with the immediate support at 0.8105 9low Jan.7 2013) ahead of 0.8098 (low Jan.4 2013) and finally 0.8086 (2013 low Jan.3). On the upside, a break above 0.8158 (high May 20) would expose 0.8162 (10-d MA) and then 0.8172 (high May 16).