5 Sep 2013
EUR/GBP erodes 200-day SMA, more downside predicted?
FXstreet.com (Lisbon) - The EUR/GBP technical cross has held a tight consolidation ahead of the BoE and ECB later today, having thus far been shackled in negativity.
Thursday will be a busy day for the EUR/GBP, with both the BoE and ECB scheduled to release their monetary policy statements at 11:00 GMT and 12:30 GMT respectively.
Despite only trading in a 27-pip range (0.8430-0.8457), the EUR/GBP is now operating at 0.8446, incurring a fall of -0.05% off its opening. Briefing the technicals, the EUR/GBP remains fortified above support at 0.8430, ahead of 0.8410, and 0.8393, notes the Mataf.net analyst team.
EUR/GBP strategic bias
According to Karen Jones, an analyst at Commerzbank, “The EUR/GBP remains directly offered. The market has eroded its 200-day moving average for the first time this year and has also eroded and closed below the 0.8470 June low – this is viewed as negative. Intraday rallies should now remain capped by the 0.8531 previous 2012-2013 uptrend (this should now act as resistance) and will find initial resistance at 0.8470/0.8500 for another leg down to the 0.8399 2013 low and 0.8366 the 200-week ma.”
Thursday will be a busy day for the EUR/GBP, with both the BoE and ECB scheduled to release their monetary policy statements at 11:00 GMT and 12:30 GMT respectively.
Despite only trading in a 27-pip range (0.8430-0.8457), the EUR/GBP is now operating at 0.8446, incurring a fall of -0.05% off its opening. Briefing the technicals, the EUR/GBP remains fortified above support at 0.8430, ahead of 0.8410, and 0.8393, notes the Mataf.net analyst team.
EUR/GBP strategic bias
According to Karen Jones, an analyst at Commerzbank, “The EUR/GBP remains directly offered. The market has eroded its 200-day moving average for the first time this year and has also eroded and closed below the 0.8470 June low – this is viewed as negative. Intraday rallies should now remain capped by the 0.8531 previous 2012-2013 uptrend (this should now act as resistance) and will find initial resistance at 0.8470/0.8500 for another leg down to the 0.8399 2013 low and 0.8366 the 200-week ma.”