Forex: EUR/GBP retraces to 0.8510 after session highs
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EUR/GBP
FXstreet.com (Barcelona) - The pair is prolonging its intraday upside following the positive momentum of the single currency after the German IFO and the LTRO repayment figures. Adding to the upside, the GDP in the UK during the fourth quarter put extra selling pressure on the sterling, hovering around the 1.58 figure against the greenback.
"We are still bearish on the outlook for the pound this year. However, given our bearish USD view we see more scope for sterling depreciation vs. the EUR this year and continue to favour buying dips on EURGBP", suggested Jane Foley, Senior Currency Strategist at Rabobank.
At the moment, the pair is gaining 0.46% at 0.8512, and a breakout of 0.8555 (high Dec.12 2011) would aim for 0.8563 (high Dec.9 2011) and finally 0.8620 (high Nov.24 2011).
On the downside, support levels are located at 0.8463 (hourly low Jan.25) en route to 0.8388 (MA10d) and then 0.8355 (low Jan.18).
"We are still bearish on the outlook for the pound this year. However, given our bearish USD view we see more scope for sterling depreciation vs. the EUR this year and continue to favour buying dips on EURGBP", suggested Jane Foley, Senior Currency Strategist at Rabobank.
At the moment, the pair is gaining 0.46% at 0.8512, and a breakout of 0.8555 (high Dec.12 2011) would aim for 0.8563 (high Dec.9 2011) and finally 0.8620 (high Nov.24 2011).
On the downside, support levels are located at 0.8463 (hourly low Jan.25) en route to 0.8388 (MA10d) and then 0.8355 (low Jan.18).
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