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8 Oct 2013
EUR/GBP building blocks for lower?
FXstreet.com (London) - EUR/GBP spiked higher to 0.8470 but has since resumed the downside ahead of support 0.8420.
However, research team at RBS commented, “The risks for EUR/GBP are skewed to a higher EUR/GBP rate, in our view. The ECB appears to be taking a hard currency approach, having missed several opportunities to talk the currency down last week, as well as stressing capital raising over ECB liquidity. Meanwhile markets will be looking ahead to see if there will be a chance of any surprises from the BoE. It is unexpected as the MPC has voted unanimously in each of the past three months, with no members making the case for further stimulus in September.
EUR/GBP Levels
The 20 DMA us 0.8406, the 50 DMA is 0.8504 and the 200 DMA is 0.8516. RSI (14) reads 37.10. Supports are ascending from 0.8333, 0.8368 and 0.8382. Spot is currently 0.8432. Resistances are from 0.8459, 0.8488, 0.8505 and 0.8520.
However, research team at RBS commented, “The risks for EUR/GBP are skewed to a higher EUR/GBP rate, in our view. The ECB appears to be taking a hard currency approach, having missed several opportunities to talk the currency down last week, as well as stressing capital raising over ECB liquidity. Meanwhile markets will be looking ahead to see if there will be a chance of any surprises from the BoE. It is unexpected as the MPC has voted unanimously in each of the past three months, with no members making the case for further stimulus in September.
EUR/GBP Levels
The 20 DMA us 0.8406, the 50 DMA is 0.8504 and the 200 DMA is 0.8516. RSI (14) reads 37.10. Supports are ascending from 0.8333, 0.8368 and 0.8382. Spot is currently 0.8432. Resistances are from 0.8459, 0.8488, 0.8505 and 0.8520.