26 Jul 2013
EUR/GBP confined to narrow ranges
FXstreet.com (Barcelona) - EUR/GBP has ben confined to a narrow range due to dollar activity.
EUR/GBP is sidelined while the dollar is generally offered across the board and without any key data at the end of this week for the pair, the likelihood is that it will remain in a narrow range through the day. The theme of the markets is the dollar due to a WSJ Hilsenrath article that suggested the Fed will stick to a dovish script next week, possibly lowering the unemployment threshold for raising rates to below 6.5%. This was followed by news that a number of US Senate Democrats have circulated a letter in support of Janet Yellen, a noted dove, to replace Fed Chairman Bernanke when his term ends early next year.
EUR/GBP continues to see a strong rebound
EUR/GBP has performed well recently but the 0.8715 area offers some tough overhead resistance. This is the recent high and the 2008-2013 resistance line before next level, 0.8793/0.8814, and highs seen earlier in the year come back into the picture. Below 0.8575 gives the bears an opportunity for some deeper continuations towards the0.8518/0.8470 area and 3 month uptrend and 2012-2013 uptrend.
EUR/GBP is sidelined while the dollar is generally offered across the board and without any key data at the end of this week for the pair, the likelihood is that it will remain in a narrow range through the day. The theme of the markets is the dollar due to a WSJ Hilsenrath article that suggested the Fed will stick to a dovish script next week, possibly lowering the unemployment threshold for raising rates to below 6.5%. This was followed by news that a number of US Senate Democrats have circulated a letter in support of Janet Yellen, a noted dove, to replace Fed Chairman Bernanke when his term ends early next year.
EUR/GBP continues to see a strong rebound
EUR/GBP has performed well recently but the 0.8715 area offers some tough overhead resistance. This is the recent high and the 2008-2013 resistance line before next level, 0.8793/0.8814, and highs seen earlier in the year come back into the picture. Below 0.8575 gives the bears an opportunity for some deeper continuations towards the0.8518/0.8470 area and 3 month uptrend and 2012-2013 uptrend.