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Cross Retains a Heavy Feel

EURGBP
MNI (London)
  • EUR/GBP made a brief show outside the base of its 1.0% 10-dma envelope as rate pressed down to Gbp0.8884(Wednesday envelope base Gbp0.8888) but quickly corrected back inside during the NY session.
  • The cross recovered to Gbp0.8926 before drifting off to Gbp0.8912 into the close.
  • Asia continued the slow ease, with Europe adding further weight to allow rate to make a show back under Gbp0.8900.
  • Support seen at Wednesday's low of Gbp0.8884, with the base of the 1.0% envelope currently coming through at Gbp0.8875. A break here to expose the recent lows at Gbp0.8866/61.
  • Though the envelope base is not a support in itself the rate tends not to like moving outside for too long. Also a rejection away would bring the 10-dma back into view, currently at Gbp0.8975.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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