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Forex pairs in this Article » EUR/GBP (Athens) – The EUR/GBP is heading a bit downwards but mostly sidelines after the UK GDP came exactly in lines with expectations, indicating that the UK economy grew in the fastest pace since the past three years.

EUR/GBP eyes 0.8515 as sterling is boosted on solid UK GDP

The EUR/GBP is moving slightly downwards as despite the fact that the UK GDP data came in line with expectations, still the UK grew at the fastest rate in more than three years in the third quarter. Thus, traders should interpret the data mostly in a manner as of that the UK is finally regaining the output it lost when the financial crisis struck roughly 5 years ago. On the other hand, as the data failed to overcome the estimations on the UK GDP, market participants might start to price in that BoE will not be hawkish on its 7th November conference, as a careful reading proves that UK has still some way to go on as the output remains approximately 2.5% below its peak before 2008 financial crisis. All in all, with discouraging IFO data on behalf of Euro zone’s power horse, i.e. Germany, it seems that the cross will remain well capped by its 200-daily MA at the 0.8532 area.

Technical Aspects on the EUR/GBP

Karen Jones Head Technical Analyst of Commerzbank, mentions that the “EUR/GBP has reached the .8550/50% retracement of the move down from August and this has provoked initial failure. 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 .8487 short term uptrend.”
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