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16 Sep 2013
EUR/GBP capped and continuing in bear trend
FXstreet.com (London) - EUR/GBP has reached a high of 0.8394 but has been capped here in a continuation of the broad August bear trend to the downside.
EUR/GBP is continuing lower from the August peak 0.8771 and is capped below the psychological 0.8400 handle. Sterling is taking advantage of the dollar weakness surround the news on the Hawk, Larry Summers’, withdrawal from being considered as the next Fed Chairman and the possibility that the Dove, Janet Yellen, may be the person for the job has lead to the dollar dropping significantly towards significant levels in dollar crosses. Markets are expecting a longer term in current accommodative policies. Meanwhile, EZ CPI data has come in line with expectations while we await UK CPI and BoE minutes out a little later on this week.
EUR/GBP levels
The 20 DMA is .8498, the 50 DMA is .8575 and the 200 DMA is .8495. RSI (14) reads 44.25. Supports are ascending from .8286 .8300, .8326 and .8355. Spot is currently .8382 while resistances are .8393, .8426, .8439 and .8465
EUR/GBP is continuing lower from the August peak 0.8771 and is capped below the psychological 0.8400 handle. Sterling is taking advantage of the dollar weakness surround the news on the Hawk, Larry Summers’, withdrawal from being considered as the next Fed Chairman and the possibility that the Dove, Janet Yellen, may be the person for the job has lead to the dollar dropping significantly towards significant levels in dollar crosses. Markets are expecting a longer term in current accommodative policies. Meanwhile, EZ CPI data has come in line with expectations while we await UK CPI and BoE minutes out a little later on this week.
EUR/GBP levels
The 20 DMA is .8498, the 50 DMA is .8575 and the 200 DMA is .8495. RSI (14) reads 44.25. Supports are ascending from .8286 .8300, .8326 and .8355. Spot is currently .8382 while resistances are .8393, .8426, .8439 and .8465