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2 Aug 2013
EUR/GBP reading overbought RSI
FXstreet.com (London) - EUR/GBP has seen lots of movement since Wednesday from the highs around 0.8770 to the lows Thursday around 0.8680 to currently trade 0.8730, above key 0.8710 resistance with RSI printing above 70.
EUR/GBP has been subject to all three of the FOMC, BoE and the ECB. Nick Porbert at Deutsche Bank AG, (DB), London, Press & Media Relations, said there was plenty of news to digest out of Europe yesterday including Draghi’s post-ECB comment that “current expectations of rate hikes in money markets are, according to our assessment, unwarranted”. He said that their own (DB’s) Gilles Moec believes that the "Carney-like" mention could have been a significant step up to "pricing guidance", but he notes that this came up in the Q&A, not in the prepared statement and when offered the opportunity by a journalist to "nail the point home" Draghi passed on the opportunity. “Gilles interpretation is that Draghi may have been "ahead of the Council" on this particular signal. In general, the press conference reflected, in his view, a sense at the ECB that it can for now "take a pause". The Bank of England left policy unchanged and we’re left to wait until next week’s quarterly inflation report (Wednesday) in which Carney will give his first press conference since taking office in July”. Today we will see attention turning to the Us again with the release of Non Farm Payrolls.
EUR/GBP upside bias and levels
EUR/GBP is printing above the pivot of 0.8728 and has pulled back into this weeks ascending channel. The pair has breached the 0.8710 2008-2013 resistance line which is key and now targets 0.8793/0.8814 highs of this year before psychological 0.9000 and 2011 highs at 0.9082. The 20 dma is at 0.8640, 50 dma 0.8574 and 200 dma is at 0.8420. RSI (9) reads 72.37 which does indicate overbought, so next levels may be tough up ahead and eyes will be on next weeks BoE inflation report that may offer fundamental further stimuli to break this barrier. Supports are ascending from 0.8606, 0.8622, 0.8645, 0.8675 and Sport is currently 0.8735. Resistances are 0.8770, 0.8793, 0.8814 and 0.8831.
EUR/GBP has been subject to all three of the FOMC, BoE and the ECB. Nick Porbert at Deutsche Bank AG, (DB), London, Press & Media Relations, said there was plenty of news to digest out of Europe yesterday including Draghi’s post-ECB comment that “current expectations of rate hikes in money markets are, according to our assessment, unwarranted”. He said that their own (DB’s) Gilles Moec believes that the "Carney-like" mention could have been a significant step up to "pricing guidance", but he notes that this came up in the Q&A, not in the prepared statement and when offered the opportunity by a journalist to "nail the point home" Draghi passed on the opportunity. “Gilles interpretation is that Draghi may have been "ahead of the Council" on this particular signal. In general, the press conference reflected, in his view, a sense at the ECB that it can for now "take a pause". The Bank of England left policy unchanged and we’re left to wait until next week’s quarterly inflation report (Wednesday) in which Carney will give his first press conference since taking office in July”. Today we will see attention turning to the Us again with the release of Non Farm Payrolls.
EUR/GBP upside bias and levels
EUR/GBP is printing above the pivot of 0.8728 and has pulled back into this weeks ascending channel. The pair has breached the 0.8710 2008-2013 resistance line which is key and now targets 0.8793/0.8814 highs of this year before psychological 0.9000 and 2011 highs at 0.9082. The 20 dma is at 0.8640, 50 dma 0.8574 and 200 dma is at 0.8420. RSI (9) reads 72.37 which does indicate overbought, so next levels may be tough up ahead and eyes will be on next weeks BoE inflation report that may offer fundamental further stimuli to break this barrier. Supports are ascending from 0.8606, 0.8622, 0.8645, 0.8675 and Sport is currently 0.8735. Resistances are 0.8770, 0.8793, 0.8814 and 0.8831.