EUR/GBP firmer, eyes on 0.7950

By FXstreet.com | August 07, 2014 AAA

FXStreet (Edinburgh) - The upbeat momentum in the single currency is pushing the EUR/GBP to test intraday highs in the boundaries of 0.7960.

EUR/GBP following the EUR move

The EUR is now taking centre stage in the FX universe, following the appreciations by President Draghi in today’s press conference after the ECB left unchanged its monetary policy. A renewed GBP weakness is also collaborating with today’s strength in the cross in the wake of the unchanged statement from the BoE in its MPC meeting. Mario Draghi repeated that inflation expectations remain well anchored and consumer prices should start to head higher towards the ECB’s 2% target in the next periods. He also stated that the central bank’s policy stance remains accommodative. Regarding the ongoing geopolitical risks hovering over the global markets, Draghi avoided to give potential effects although he stressed the ECB is assessing the impact of the recent EU sanctions against Russia. Once again, he said that the economic recovery remains fragile and uneven.

EUR/GBP significant levels

At the moment the cross is up 0.15% at 0.7953 with the next resistance at 0.7964 (high Aug.5) followed by 0.7985 (high Aug.1) and then 0.8007 (high Jul.1). On the flip side, a break below 0.7927 (21-d MA) would open the door to 0.7916 (low Aug.6) and finally 0.7915 (low Jul.31).

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