OctaFX | OctaFX Forex Broker
Open trading account
Back

EUR/GBP: Offered below hourly 200-MA

FXStreet (Mumbai) - The EUR/GBP was offered heavily after it fell below its hourly 200-MA then located at 0.7386. The pair fell to a one-week low of 0.7347 levels.

Eyes UK data

The immediate focus is on the UK data, which is expected to show the industrial activity rebounded in August. The sell-off in the EUR/GBP could be attributed to rise in the EU stocks, weak German data and M&A demand for Sterling.

Moreover, the EUR/GBP cross has been battling with the bears in the last five sessions to rise above 0.74 levels. An attempt was made earlier today to take out 0.74, but offers ensured the spot fell back below its hourly 200-MA.

EUR/GBP Technical Levels

At 0.7355, the immediate support is seen at 0.7335 (Sep 28 low), under which the pair could drop to 0.73 (psychological support) followed by a major support at 0.7278 (200-DMA). On the other side, resistance is seen at 0.7386 (hourly 200-MA)-0.7400 followed by a major hurdle at 0.7434 (inverted head and shoulder neckline on the daily chart).

US: Weak trade numbers led to cut in GDP forecasts – Deutsche Bank

Jim Reid, Research Analyst at Deutsche Bank, suggests that the confirmed weaker US trade numbers led our economists to cut their GDP forecasts for Q3 and Q4 with the former reduced from 3.0% to 1.7%, and the latter trimmed from 3.0% to 2.3%.
Read more Previous

UK: BoE should maintain status quo tomorrow – ING

James Knightley, Senior Economist at ING, suggests that the Bank of England should leave policy unchanged this Thursday as external worries and non-existent price inflation offset a decent domestic growth and wage inflation story.
Read more Next
Start livechat