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Forex pairs in this Article » EUR/GBP (Athens) – The EUR/GBPP has been trading at a very confined area since the early kick off of the Wellington trading session, hovering amidst 0.8378 – 0.8387 zone.

EUR/GBP stuck at a tight range; awaiting for today’s speeches (ECB’s Asmussen, Nowotny, Weidmann), UK data

The EUR/GBP was caught under little trading action since the early Asian trading session, while it spiked higher in early Asia near 0.8387 level. Market participants might attribute the lackluster trading performance of the cross to the general little action that the euro crosses witnessed during the Asian session, while some of them were generally slightly bid mostly to short-covering. Later on apart from the UK data, markets will be focused to the speeches on behalf of Buba (Weidmann), Asmussen and Nowotny.

Technical Aspects on the EUR/GBP

Upwards, it is laying the solid resistance as of 0.8400, which is considered by many analysts to be very difficult to be breached. On the opposite side, many analysts assume that in case the cross moves towards the 0.8400 level, it will immediately run out of steam, therefore the downtrend shift will be well back on track. Downwards, the most solid support could be find in the area of 0.8285 (50% Fibonacci retracemt of the uptrend movement of 0.7716 – 0.8815). BNP Paribas mentioned yesterday in a report, that taken for granted that the growth and monetary policy divergence between UK and Euro zone will be increasingly pronounced the upcoming weeks, “the EUR/GBP bounces are selling opportunities.”
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