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Forex pairs in this Article » EUR/GBP (London) - EUR/GBP is making some modest ground back after failing at 0.8520 support in the opening of the weeks session.

EUR/GBP has recovered from 0.8445 the low and has recorded a 0.8493 high despite strong UK data. The BoE on Thursday is going to be the main UK event for the week, where there is still the risk that the Bank attempts to push back on market expectations for the timing of an eventual rate hike. Then the US payrolls will be in focus and will be make or break for September tapering, according to Cristian Maggio, Senior Emerging Markets Strategist, Rates and FX Research at TD Securities. “…with 100k being the key threshold.”

EUR/GBP eyes 0.8526

Karen Jones, chief strategist at Commerzbank said that the EUR/GBP has sold off to the 0.8470 June low. “While it is possible that this will hold the initial test, we look for rallies to now remain capped by the .8526 previous 2012-2013 uptrend (this should now act as resistance). We look for intraday rallies to be capped by .8500/15 for another leg down to the 0.8399 2013 low and .8366 the 200 week ma. Intraday charts are suggesting that the rally will not exceed .8550 and while capped here the market is directly offered”.
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