22 Aug 2013
EUR/GBP soars across the board after solid Euro zone data
FXstreet.com (Athens): EUR/GBP is well supported over 0.8520 area, on better than expected Euro land PMI.
European growth prospects as well as no significant UK data, ‘uplift ‘the pair.
Despite, sterling’s post FOMC move has largely been in line with the wider American dollar, sterling lost ground against the single currency. Signs of a stabilizing China and improvement in European growth prospects have helped cushion what has been deteriorating risk appetite this week. Mainly, global concerns have been manifested in the form of collapsing emerging markets, which has boosted those currencies with ‘risk-appetite’, growth momentum, like the single currency. Therefore, signs that the Euro-Zone may stay out of recession in the third quarter of 2013 produced a stronger Euro. What’s more, UK data is very light today, therefore the trend is set to continue.
Technical outlook on EUR/GBP
Jynske Bank Team suggest that ‘We recommend that investors place a sell order at 86.20 to catch EURGBP before the next weakening phase begins. In the short term, EURGBP trades in oversold territory, and therefore we expect that in the short term EURGBP will trade back towards the 86.30-86.90 range. No important fundamentals will be announced in the UK this week. We still expect that GBP will strengthen over the coming 3, 6 and 12 months’. The FXstreet.com Trend Index shows the pair to be slightly bullish.. Daily pivot point support can be found at 0.8520, 0.8500, 0.8484 and resistance at 0.8600, 0.8622, 0.8698, respectively.
European growth prospects as well as no significant UK data, ‘uplift ‘the pair.
Despite, sterling’s post FOMC move has largely been in line with the wider American dollar, sterling lost ground against the single currency. Signs of a stabilizing China and improvement in European growth prospects have helped cushion what has been deteriorating risk appetite this week. Mainly, global concerns have been manifested in the form of collapsing emerging markets, which has boosted those currencies with ‘risk-appetite’, growth momentum, like the single currency. Therefore, signs that the Euro-Zone may stay out of recession in the third quarter of 2013 produced a stronger Euro. What’s more, UK data is very light today, therefore the trend is set to continue.
Technical outlook on EUR/GBP
Jynske Bank Team suggest that ‘We recommend that investors place a sell order at 86.20 to catch EURGBP before the next weakening phase begins. In the short term, EURGBP trades in oversold territory, and therefore we expect that in the short term EURGBP will trade back towards the 86.30-86.90 range. No important fundamentals will be announced in the UK this week. We still expect that GBP will strengthen over the coming 3, 6 and 12 months’. The FXstreet.com Trend Index shows the pair to be slightly bullish.. Daily pivot point support can be found at 0.8520, 0.8500, 0.8484 and resistance at 0.8600, 0.8622, 0.8698, respectively.