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EUR/GBP Retains Heavy Feel

EURGBP
MNI (London)
  • EUR/GBP made a show above its key technical 10-dma Friday, touched a high of Gbp0.8791 before retreating, picking up stronger sell interest into NY which pressed rate to an eventual low of Gbp0.8744, closing the week around Gbp0.8748.
  • The close below the 10-dma(current Gbp0.8770) keeps the recent bearish tone in place.
  • Cross touched a high in early Tokyo at Gbp0.8753 before fresh demand for GBP emerged (traders seen reacting to the vaccine rollout success in the UK, 15mn first doses given and hopefully brings forward the relaxing of lock down measures).
  • Rate was pressed to an extended low of Gbp0.8726 but had recovered to Gbp0.8738 into Europe.
  • Support Gbp0.8710/00, Gbp0.8690 with the base of the 1.0% 10-dma envelope currently coming through at Gbp0.8682.
  • Resistance Gbp0.8750/55, Gbp0.8770 with stronger interest remaining place between Gbp0.8790/0.8800.
  • MNI Techs: EURGBP is lower and has traded to a fresh trend low today reinforcing the underlying bearish trend. Moving average conditions are also in a bear mode highlighting the current path least resistance. The focus is on 0.8711 next, May 11 2020 low with scope too for a breach of the 0.8700 handle. On the upside, initial firm resistance is at 0.8840. A breach of this level would signal scope for a stronger corrective bounce. Initial resistance is at 0.8797.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets

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