Back
14 Jan 2015
EUR/GBP remains in sub-0.7800 levels
FXStreet (Edinburgh) - EUR/GBP seems to be consolidating its recent breach of the 0.7800 critical support, now hovering over 0.7760/50.
EUR/GBP looks to the ECJ for clues
Absent relevant data in both the EMU and the UK economy, today’s decision of the European Court of Justice on OMT will take centre stage, as it could probe to be crucial for the ECB’s QE programme, to be announced sooner than later according to market chatter. In addition, Chancellor A.Merkel, ECB’s M.Draghi and W.Schauble will hold a close-door meeting after the decision. In the view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the cross “last week rallied to and failed at the .7874 July low. This should re-focus attention back to the 50% retracement of the entire move from 2000-2008 which is located at .7744. This remains the critical support and we will need to see at least one close below here to confirm a break lower”.
EUR/GBP levels to consider
As of writing the cross is advancing 0.12% at 0.7773 facing the next hurdle at 0.7807 (10-d MA) followed by 0.7831 (high Jan.12) and then0.7855 (high Jan.8). On the downside, a break below 0.7757 (low Jan.13) would open the door to 0.7746 (2015 low Jan.2) and finally 0.7737 (low Oct.21 2008).
EUR/GBP looks to the ECJ for clues
Absent relevant data in both the EMU and the UK economy, today’s decision of the European Court of Justice on OMT will take centre stage, as it could probe to be crucial for the ECB’s QE programme, to be announced sooner than later according to market chatter. In addition, Chancellor A.Merkel, ECB’s M.Draghi and W.Schauble will hold a close-door meeting after the decision. In the view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the cross “last week rallied to and failed at the .7874 July low. This should re-focus attention back to the 50% retracement of the entire move from 2000-2008 which is located at .7744. This remains the critical support and we will need to see at least one close below here to confirm a break lower”.
EUR/GBP levels to consider
As of writing the cross is advancing 0.12% at 0.7773 facing the next hurdle at 0.7807 (10-d MA) followed by 0.7831 (high Jan.12) and then0.7855 (high Jan.8). On the downside, a break below 0.7757 (low Jan.13) would open the door to 0.7746 (2015 low Jan.2) and finally 0.7737 (low Oct.21 2008).