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Forex pairs in this Article » EUR/GBP (London) - EUR/GBP has been mostly bid on Monday and the start of this weeks busy looking session on the calendar. The pair are holding above key support and looks ahead to further key data releases.

The EUR/GBP cross rallied at the off today and then sold off to 0.8460 post the construction PMI’s. German data came in stronger but the EZ was failed with softer data from France Spain and Italy. “…the key economic events this week will be Thursday's ECB meeting, where we expect the ECB to signal a rate cut in December, and US non-farm payrolls on Friday”, explained research teams at Danske Bank. Meanwhile research teams at RBS mentioned better US data at the margin increase the chances of a Fed December taper; However, the probability of this still seems very low. “Along with our views on this week's policy meetings, this leaves us reluctant to chase EUR/USD and GBP/USD lower… we remain of the view that GBP is vulnerable to a softening in high frequency data”.

EUR/GBP Levels

The 20 DMA is 0.8490, the 50 DMA is 0.8460 and the 200 DMA is 0.8537. RSI (14) reads 42.72. Supports are ascending from 0.8368, 0.8376, 0.8425/30 (key support) and 0.8443. Spot is currently 0.8467 while resistances are coming in at 0.8505, 0.8544, 0.8565 and 0.8585.
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