5 Jun 2015
EUR/GBP: Capped below 0.7390 key resistance
FXStreet (Guatemala) - EUR/GBP is currently trading at 0.7285 with a high of 0.7360 and a low of 0.7269.
We are in a continuation of a supply where the cross met the highs and followed suit of the major across the board as we draw in towards the close for the week having passed the showdown that was the Nonfarm Payrolls. This result was very positive for the US economy that took the EUR/USD down from 1.1280 to 1.1050 and the cross 0.7360 to 0.7268. This move has set a potential cap on the upside for now regardless of concerns for continued austerity in the UK as a head wind to UK growth and while the Greek debt negotiations continue.
Technically, Karen Jones, chief analyst at Commerzbank explained that EUR/GBP has halted for now at tougher resistance offered by 0.7375/91. "This is the March high, the 6 month resistance line and 78.6% retracement. Failure here should see a slide back to the 55 day ma at 0.7244, which we suspect will hold for now. Below here will target 0.7127/23 (Fibo + 22nd April low)."
We are in a continuation of a supply where the cross met the highs and followed suit of the major across the board as we draw in towards the close for the week having passed the showdown that was the Nonfarm Payrolls. This result was very positive for the US economy that took the EUR/USD down from 1.1280 to 1.1050 and the cross 0.7360 to 0.7268. This move has set a potential cap on the upside for now regardless of concerns for continued austerity in the UK as a head wind to UK growth and while the Greek debt negotiations continue.
Technically, Karen Jones, chief analyst at Commerzbank explained that EUR/GBP has halted for now at tougher resistance offered by 0.7375/91. "This is the March high, the 6 month resistance line and 78.6% retracement. Failure here should see a slide back to the 55 day ma at 0.7244, which we suspect will hold for now. Below here will target 0.7127/23 (Fibo + 22nd April low)."