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20 Jun 2013
EUR/GBP declines following improving UK Retail Sales
FXstreet.com (Barcelona) - Having largely ranged throughout the Asian and early European session, EUR/GBP has declined in the immediate reaction to UK Retail Sales data.
The pair ranged overnight, unmoved by Fed Chairman Bernanke´s admission that the Central Bank will look to start tapering QE during 2013. However, EUR/GBP declined in early trading after soft German PPI data, which saw spot decline to post a low at 0.8556, before finding support and edging higher after better than expected EU PPI numbers. UK Retail Sales data has leapfrogged expectations at 1.9%/0.2% YoY, 2.1%/0.8% MoM, 2.1%/0.5% ex Fuel YoY and 2.1%/0.9% ex Fuel MoM. The immediate reaction has seen spot post a fresh daily low at 0.8536.
EUR/GBP looks technically bearish
Hourly oscillators are showing some downside bias, with Stochastics moving from overbought overnight to 42 and RSI is at 33. Shorter term hourly MAs are showing a downside bias, while longer term are either flat or bullish. Looking at immediate support below, classic S1 is at 0.8555, and S2 at 0.8523. Above resistance can be found at the daily Pivot at 0.8573 and R1 at 0.8605.
The pair ranged overnight, unmoved by Fed Chairman Bernanke´s admission that the Central Bank will look to start tapering QE during 2013. However, EUR/GBP declined in early trading after soft German PPI data, which saw spot decline to post a low at 0.8556, before finding support and edging higher after better than expected EU PPI numbers. UK Retail Sales data has leapfrogged expectations at 1.9%/0.2% YoY, 2.1%/0.8% MoM, 2.1%/0.5% ex Fuel YoY and 2.1%/0.9% ex Fuel MoM. The immediate reaction has seen spot post a fresh daily low at 0.8536.
EUR/GBP looks technically bearish
Hourly oscillators are showing some downside bias, with Stochastics moving from overbought overnight to 42 and RSI is at 33. Shorter term hourly MAs are showing a downside bias, while longer term are either flat or bullish. Looking at immediate support below, classic S1 is at 0.8555, and S2 at 0.8523. Above resistance can be found at the daily Pivot at 0.8573 and R1 at 0.8605.