12 Feb 2014
EUR/GBP taking out the 0.82 handle
FXStreet (Guatemala) - The theme of the markets in Europe and to some extent flowing over into NY, have all been about Sterling.
Sterling is well bid with some analysts at some major banks shifting on their expectations of a hike to come in as soon as Q2 2015. “On balance, the risks around our forecast for the first Bank Rate hike in Q3 2015 have shifted towards an earlier rise (ie, Q2 2015)”, explained analysts at The Royal Bank of Scotland. However, not all have come to the same conclusions and have preferred to focus on the upbeat message from higher growth. So EUR/GBP all in all is about a big figure lower now than before the Inflation Report and has taken the 0.82 handle out to the downside. RSI (14) indicates however that this move could be overdone.
EUR/GBP Levels
The 20 DMA is 0.8267, the 50 DMA is 0.8315 and the 200 DMA is 0.8453. RSI (14) reads 27.80. Next Support is 0.8168 with Spot currently at 0.8193. Resistances are 0.8243, 0.8337, 0.8351, 0.8372 and 0.8394.
Sterling is well bid with some analysts at some major banks shifting on their expectations of a hike to come in as soon as Q2 2015. “On balance, the risks around our forecast for the first Bank Rate hike in Q3 2015 have shifted towards an earlier rise (ie, Q2 2015)”, explained analysts at The Royal Bank of Scotland. However, not all have come to the same conclusions and have preferred to focus on the upbeat message from higher growth. So EUR/GBP all in all is about a big figure lower now than before the Inflation Report and has taken the 0.82 handle out to the downside. RSI (14) indicates however that this move could be overdone.
EUR/GBP Levels
The 20 DMA is 0.8267, the 50 DMA is 0.8315 and the 200 DMA is 0.8453. RSI (14) reads 27.80. Next Support is 0.8168 with Spot currently at 0.8193. Resistances are 0.8243, 0.8337, 0.8351, 0.8372 and 0.8394.