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Forex pairs in this Article » EUR/GBP (Athens) - Despite the absence of any major market movers for the common currency, EUR/GBP is heading upwards, nearly its daily high (0.8573).

In the risk off environment ahead of Fed events; sterling got hurt. Another day absent of noteworthy data from Europe or UK has traders honed in on QE3 speculation - whether or not the 'tapering on September' will come to fruition. It’s been a quiet start to the trading week thanks to a barren economic calendar; but with several important data and events due over the next few days, the newswires shouldn’t stay quiet for long. This week is notable in particular given two important Federal Reserve events that should give greater insight as to which way the central bank is leaning towards tapering QE3 in September. While all the above move markets in a more ‘risk-averted’ mood, the sterling suffered across the board. As a matter of fact, sterling received another boost after the CBI upgraded its growth forecasts for the UK yesterday, but could not be able to sustain its gains.

EUR/GBP Key levels

Jynske Bank Team analysts suggest that “We recommend that investors place a sell order at 86.20 to catch EUR/GBP before the next weakening phase begins. In the short term, EUR/GBP trades in oversold territory, and therefore we expect that in the short term EUR/GBP will trade back towards the 86.30-86.90 range. No important fundamentals will be announced in the UK this week. Furthermore, we still expect that GBP will strengthen over the coming 3, 6 and 12 months.” The Trend Index shows the pair to be slightly bullish. Daily pivot point support can be found at 0.8534, 0.8504, 0.8482, and resistance at 0.8586, 0.8598, and 0.8619, respectively.
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