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29 Oct 2014
EUR/GBP at the roof of current range
FXStreet (Moscow) - EUR/GBP spent most of Wednesday trades at the roof of the current range, trading at 0.7893 currently.
The pair is still trading within a 40-pip 0.7860-0.79 range trying to find arguments in favor of breakout any of the barriers. The pound looks more vulnerable to FOMC issue, as event outcome will have direct impact on the cable fate. Now, the market is trying to understand which central bank will be the first to hike the rates. And if the looming meeting supports the possibility of longer-than-expected period of low rates in the USA, the capital may fly back to the British pound, as investors still believe they will see tightening in the first half of the next year. In this case, the cross may rush to the range bottom, and attempt to break below it with initial target at 0.7845 support.
What are today’s key EUR/GBP levels?
Today's central pivot point can be found at 0.7890 with support below at 0.7876, 0.7859, and 0.7845, with resistance above at 0.7907, 0.7921, and 0.7938. Hourly Moving Averages are mixed, with the 200SMA bearish at 0.7901 and the daily 20EMA flat at 0.7896. Hourly RSI is bullish at 53.
The pair is still trading within a 40-pip 0.7860-0.79 range trying to find arguments in favor of breakout any of the barriers. The pound looks more vulnerable to FOMC issue, as event outcome will have direct impact on the cable fate. Now, the market is trying to understand which central bank will be the first to hike the rates. And if the looming meeting supports the possibility of longer-than-expected period of low rates in the USA, the capital may fly back to the British pound, as investors still believe they will see tightening in the first half of the next year. In this case, the cross may rush to the range bottom, and attempt to break below it with initial target at 0.7845 support.
What are today’s key EUR/GBP levels?
Today's central pivot point can be found at 0.7890 with support below at 0.7876, 0.7859, and 0.7845, with resistance above at 0.7907, 0.7921, and 0.7938. Hourly Moving Averages are mixed, with the 200SMA bearish at 0.7901 and the daily 20EMA flat at 0.7896. Hourly RSI is bullish at 53.