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11 Feb 2014
EUR/GBP is ready to go back to 0.8350 on central banks expectations
FXStreet (Moscow) - EUR/GBP did dare to expand the trading range to more than 10 pips, trading to 0.8334 high but retracing to 0.8327 at the moment.
EUR/GBP is fundamentally bullish
Although we see rather sluggish attempts to rise in the morning, the pair has strong potential to go higher based on monetary policy expectations. The reason of the EUR priority is not in the higher chances of earlier tightening, but in delayed tightening from the BOE, and delayed easing from the ECB. The revised expectations may support the pair in middle-term, thus, every rebound lower is a good opportunity to enter the market. The nearing Inflation Report from the Britain may support the move higher up to Wednesday. In this case the initial target may be at 0.8347 resistance level followed by 0.8283.
What are today’s key EUR/GBP levels?
Today's central pivot point can be found at 0.8313 with support below at 0.8298, 0.8279 and 0.8264, with resistance above at 0.8332, 0.8347, and 0.8366. Hourly Moving Averages are bullish, with the 200SMA at 0.8277 and the daily 20EMA bullish at 0.8283. Hourly RSI is neutral at 58.
EUR/GBP is fundamentally bullish
Although we see rather sluggish attempts to rise in the morning, the pair has strong potential to go higher based on monetary policy expectations. The reason of the EUR priority is not in the higher chances of earlier tightening, but in delayed tightening from the BOE, and delayed easing from the ECB. The revised expectations may support the pair in middle-term, thus, every rebound lower is a good opportunity to enter the market. The nearing Inflation Report from the Britain may support the move higher up to Wednesday. In this case the initial target may be at 0.8347 resistance level followed by 0.8283.
What are today’s key EUR/GBP levels?
Today's central pivot point can be found at 0.8313 with support below at 0.8298, 0.8279 and 0.8264, with resistance above at 0.8332, 0.8347, and 0.8366. Hourly Moving Averages are bullish, with the 200SMA at 0.8277 and the daily 20EMA bullish at 0.8283. Hourly RSI is neutral at 58.