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Forex: EUR/GBP trading negatively at 0.8610/11

Yesterday’s breach of the 0.8800 level seems like a wayward dream a day later, as the EUR/GBP has found itself trading considerably off its European highs just 24 hours ago. An earlier attempt at the upside was stonewalled at the 0.8643 region (session high), reversing the pair and driving downwards into negative territory. With the turmoil continuing in Italy and on the heels of UK data, the cross has settled in the area of 0.8610/11 in these moments.

“The EUR/GBP plunged, achieving all of the technical objectives delivered in the weekly report that hinged on weakness. However, the drop ceased at the 0.8575 level and rose back again. As such, signals indicate the return of an intraday uptrend aren't visible, however the downtrend requires stability below 0.8575. Therefore, we will stand aside until signs of a specific direction appears.” recommends the ICN.com analyst team.

In the United Kingdom, CBI Distributive Trades Survey – Realized (MoM) was reported at just 8.0 in February, against expectations of 16.0, and compared with 17.0 previously. In addition, the BoE's Bean indicated that UK growth will strengthen through 2013-14 and is open to embracing more QE, pending the outlook for demand and inflation.

ICN.com analysts isolate the supportive means at the 0.8600 handle down to 0.8575 and eventually 0.8555. Should any advance materialize, an upward thrust towards the 0.8665 handle will instigate means of resistance at 0.8680 and 0.8700.

UK Feb CBI Distributive Trades Survey - Realized (MoM) falls to 8 vs 17 (Jan)

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