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16 Apr 2013
Forex: EUR/GBP look to break out of range to upside
FXstreet.com (Barcelona) - Having traded in a tight range since the end of last week, EUR/GBP looks to be breaking out to the upside after a morning of mixed European data.
The pair has roughly moved between 0.8525-0.8545 since Friday evening, but has just broken out to the upside and is currently trading at 0.8556. Early support was found around the daily pivot point this morning at 0.8531 and is now approaching R2 at 0.8569 where it may meet near term resistance. Hourly MA´s are indicating upside bias, but on a daily chart momentum looks more neutral. Today´s economic data has been mixed, with UK CPI beating expectations YoY but dipping MoM. UK PPI slumped, alongside RPI. EU CPI beat expectations, but the German ZEW Survey came in disappointingly, perhaps adding to eventual expectations of an ECB rate cut at the next meet. Hourly Stochastics are at 69 and look to have formed a plateau just below overbought territory. Hourly RSI is at 66 and is moving with an upside bias.
The pair has roughly moved between 0.8525-0.8545 since Friday evening, but has just broken out to the upside and is currently trading at 0.8556. Early support was found around the daily pivot point this morning at 0.8531 and is now approaching R2 at 0.8569 where it may meet near term resistance. Hourly MA´s are indicating upside bias, but on a daily chart momentum looks more neutral. Today´s economic data has been mixed, with UK CPI beating expectations YoY but dipping MoM. UK PPI slumped, alongside RPI. EU CPI beat expectations, but the German ZEW Survey came in disappointingly, perhaps adding to eventual expectations of an ECB rate cut at the next meet. Hourly Stochastics are at 69 and look to have formed a plateau just below overbought territory. Hourly RSI is at 66 and is moving with an upside bias.