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Forex pairs in this Article » EUR/GBP
FXstreet.com (Athens) – The EUR/GBP is trading slightly upwards on the kick off of the European trading opening session, but market participants focus on whether the cross manages to find the uptrend momentum to overcome the 200-daily MA barrier.

EUR/GBP slightly upwards; 200-daily MA ‘on play’

The EUR/GBP has been trading higher since the kick off of the European trading session ahead of crucial data today pertaining to both UK and Euro land. Briefly, in UK CBI trends survey and optimism will be released – and expected to upbeat data – while in Euro zone we are ahead of the PMI release. Market participants should now focus on the potential that the cross have to overcome the 200-daily MA; in this riddle, we should bear in mind that as the single currency continues to climb to an uptrend shift, the ECB rhetoric could intensify in the coming weeks/months. Briefly, HSBC analysts suggest that “This could come in many forms, be it rhetoric, a rate cut or renewed liquidity injections by the ECB, and stifling the EUR’s rise will be a key part of the strategy." Coincidentally, ECB President Mario Draghi said earlier today ECB officials ready to fail banks in next year's stress tests.

Technical Aspect on EUR/GBP

Karen Jones Head Technical Analyst of Commerzbank, mentions that the “EUR/GBP has sped higher to its 200 day ma at .8534 and looks set for further gains to the .8550/50% retracement of the move down from August. The Elliot wave count on the 240 minute chart has become more positive and is suggesting scope for gains to .8650. Given than the end of August high is .8652, we will have to allow for this move.The market is immediately bid near term above the .8478 short term
uptrend.”
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