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10 Apr 2015
EUR/GBP: Where is this heading?
FXStreet (Guatemala) - EUR/GBP is currently trading at 0.7240 with a high of 0.7260 and a low of 0.7223.
EUR/GBP has been a disappointment on a long squeeze a couple of times this week to the bulls and has penetrated the 0.7250 support which gave way to a test of the 0.7220 level that has so far held the bears at bay as we approach the close for the week.
The pair has dropped over 150 pips on the week amid some poorer data of late from the EZ, mixed speculation around the up coming UK elections, ECB easing and a strong greenback weighing heavily on the EUR/USD, dropping the 1.07 handle. Should the 0.7220 give in for the cross, the 0.7200 region and 0.7180 would open up the possibility of a reversal of the trend that started put on the bid from 0.7010 on 11th March.
Another potential support level is the March 19th low at 0.7155 and that would be key. Next week brings more data releases for the UK and EZ with UK CPI (Tues 14 Apr), UK Employment Data (Fri 17 Apr) and the UK Campaign Trail (ongoing). From the EZ, we have the ECB Decision (Wed 15 Apr) but more of note will be Draghi speaking.
EUR/GBP has been a disappointment on a long squeeze a couple of times this week to the bulls and has penetrated the 0.7250 support which gave way to a test of the 0.7220 level that has so far held the bears at bay as we approach the close for the week.
The pair has dropped over 150 pips on the week amid some poorer data of late from the EZ, mixed speculation around the up coming UK elections, ECB easing and a strong greenback weighing heavily on the EUR/USD, dropping the 1.07 handle. Should the 0.7220 give in for the cross, the 0.7200 region and 0.7180 would open up the possibility of a reversal of the trend that started put on the bid from 0.7010 on 11th March.
Another potential support level is the March 19th low at 0.7155 and that would be key. Next week brings more data releases for the UK and EZ with UK CPI (Tues 14 Apr), UK Employment Data (Fri 17 Apr) and the UK Campaign Trail (ongoing). From the EZ, we have the ECB Decision (Wed 15 Apr) but more of note will be Draghi speaking.