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Forex pairs in this Article » EUR/GBP (London) - EUR/GBP is probing 0.8400 the figure without much conviction after a jump start at the beginning of the week.

Meanwhile, the calendar has been light for the pair at the start of the week. Italian industrial production came in as expected at 0.2% M/M for September, making up slightly for the underperformance of the region earlier in Q3. “This continues to raise small downside risks to the Eurozone GDP print later this week as Germany decelerated and ex-German growth may have been slightly softer than expected as a result”, explained by the TD Securities team. Research teams at RBS explained. “The risk events for GBP this week centre on Wednesday's release of the November Inflation Report and labour market data. The focus will be the unemployment rate, both the current level and the BoE's view on how fast it's expected to fall to 7%. “Over the past couple of months we've had a few hints that the BoE's new projections will show a quicker fall in the unemployment rate, potentially hitting the threshold around two quarters earlier than the previously expected …it's important to recount BoE Deputy Governor Deputy Bean comments that the MPC may yet move the current 7% unemployment rate threshold under certain circumstances. We saw this at the time as an attempt to head off any significant change in the market pricing of the start date of policy tightening following a change in the unemployment forecast. While to a large extent this means that a more optimistic set of forecasts should already be expected, validation of such a view may support GBP”.

EUR/GBP Levels

The 20 DMA is 0.8471, the 50 DMA is 0.8442 and the 200 DMA is 0.8532. RSI(14) reads 71.97. Supports are ascending from 0.8225, 0.8266, 0.8285, 0.830. Spot is currently 0.8382 while resistance is coming in at 0.8420 and 0.8428.
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