OctaFX | OctaFX Forex Broker
Open trading account
Back

EUR/GBP: bears in control, in a reversal towards 55-W MA

  • EUR/GBP pressured as the pound outperforms the G10's.
  • EUR/GBP has  55-week MA at 0.8721 in focus.

 EUR/GBP is testing further to the downside and moving lower below bearish hourly SMAs. EUR/GBP is trading at 0.8869, down -0.62% on the day, having posted a daily high at 0.8930 and low at 0.8857.GBP is higher from Friday’s close and has been outperforming all of the G10 currencies with the exception of NZD on Monday, climbing for a fifth consecutive session while testing fresh multi-week highs at levels last seen in early November. Meanwhile, Draghi's tone today, as expected, is a reiteration of patience and persistence, anchoring the euro.

  • Draghi Speech: The ESRB continues to monitor risks to the EU financial system
  • Draghi Speech: No risk for central banks from digital currencies currently
  • Draghi Speech: QE program has enough flexibility to be adapted
  • Draghi Speech: We expect job gains to push inflation to target

Politics in focus

Elsewhere, Brexit developments are on the radar and providing the support we pick up some feelings of progress by UK's PM May in negotiating the U.K.’s divorce bill. For Germany, the week started out poorly with political uncertainty following the collapse of coalition talks, also weighing heavily on the euro.

EUR/GBP levels

"EUR/GBP last week saw initial rejection from the 0.9034 12th October 2017 high, and currently the chart is indicating that we will only see minor rallies to 0.8945 ahead of a slide towards the bottom of the range again," argued analysts at Commerzbank, adding, "Above 0.9034 would target 0.9093 then 0.9187.  Dips lower should find initial support 0.8790 ahead of major support band, namely the 200 day ma at 0.8779, the September low at 0.8746 and the 55-week ma at 0.8721," explained analysts at Commerzbank. 

Draghi Speech: The ESRB continues to monitor risks to the EU financial system.

Key highlights from the introductory statement of Mario Draghi, Chair of the European Systematic Risk Board (ESRB), Brussels, 20 November 2017. Curr
Read more Previous

German politics: what's next? - BBH

Analysts at Brown Brothers Harriman explained that talks to forge a new coalition government in Germany passed the self-imposed deadline at the end la
Read more Next
Start livechat