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3 Apr 2014
EUR/GBP depressed by Carney, but is on rebound
FXStreet (Moscow) - EUR/GBP came under pressure from recent pound strength sliding to 0.8259 session low, but rebounded to 0.8270 area ever since.
The strong enough catalyst
Despite the Service PMI from the EMU, and Carney’s comments from the BOE the pair will be totally dependent on the ECB meeting, as it showed already three attempts to break above 0.83 level, but every time didn’t have enough momentum to nest above it. This time we may get a very strong catalyst in form of the ECB meeting and the following Draghi conference. The pair may get fuel to rush higher in the only case – if nothing is changed in monetary policy, and nothing bad Is said by Draghi about economy outlook. The chances for this scenario to materialize are quite high, thus we may see the move higher with initial target at 0.8330 resistance level.
What are today’s key EUR/GBP levels?
Today's central pivot point can be found at 0.8287 with support below at 0.8262, 0.8244 and 0.8219, with resistance above at 0.8305, 0.8330, and 0.8348. Hourly Moving Averages are largely bearish, with the 200SMA at 0.8310 and the daily 20EMA flat at 0.8308. Hourly RSI is neutral at 42.
The strong enough catalyst
Despite the Service PMI from the EMU, and Carney’s comments from the BOE the pair will be totally dependent on the ECB meeting, as it showed already three attempts to break above 0.83 level, but every time didn’t have enough momentum to nest above it. This time we may get a very strong catalyst in form of the ECB meeting and the following Draghi conference. The pair may get fuel to rush higher in the only case – if nothing is changed in monetary policy, and nothing bad Is said by Draghi about economy outlook. The chances for this scenario to materialize are quite high, thus we may see the move higher with initial target at 0.8330 resistance level.
What are today’s key EUR/GBP levels?
Today's central pivot point can be found at 0.8287 with support below at 0.8262, 0.8244 and 0.8219, with resistance above at 0.8305, 0.8330, and 0.8348. Hourly Moving Averages are largely bearish, with the 200SMA at 0.8310 and the daily 20EMA flat at 0.8308. Hourly RSI is neutral at 42.