EUR/GBP holds strong trendline support, targets 0.7946
EUR/GBP has taken trendline support at 0.7850 and edged higher, but we do not see scope for much upside.
The pair is flirting with highs near 0.7900, breaks above to target 0.7946 (Mar 24th highs).
Three-month implied volatility gauge rose to almost six-year high last week, indicating investors are bracing up for a sharp swings.
Brexit risks will keep GBP weak vs its peers. Also, as the domestic economy has lost some momentum the BoE is likely to remain on hold until Q4.
Due later the European session, EMU’s advanced inflation figures for March will be in focus, while UK’s Q4 GDP figures are also expected.
After yesterday’s higher-than-expected German CPI, market consensus now sees core consumer prices in the region rising at an annual pace of 0.9% vs. February’s 0.8% gain.
Good to buy dips around 0.7890, SL: 0.7850, TP: 0.7945/0.7970
Resistance Levels:
R1: 0.79
R2: 0.7910 (Mar 25th highs)
R3: 0.7933 (Mar 23rd highs)
Support Levels:
S1: 0.7875 (5-DMA)
S2: 0.7850 (Rising trendline)
S3: 0.7835 (Mar 30th lows)
The pair is flirting with highs near 0.7900, breaks above to target 0.7946 (Mar 24th highs).
Three-month implied volatility gauge rose to almost six-year high last week, indicating investors are bracing up for a sharp swings.
Brexit risks will keep GBP weak vs its peers. Also, as the domestic economy has lost some momentum the BoE is likely to remain on hold until Q4.
Due later the European session, EMU’s advanced inflation figures for March will be in focus, while UK’s Q4 GDP figures are also expected.
After yesterday’s higher-than-expected German CPI, market consensus now sees core consumer prices in the region rising at an annual pace of 0.9% vs. February’s 0.8% gain.
Good to buy dips around 0.7890, SL: 0.7850, TP: 0.7945/0.7970
Resistance Levels:
R1: 0.79
R2: 0.7910 (Mar 25th highs)
R3: 0.7933 (Mar 23rd highs)
Support Levels:
S1: 0.7875 (5-DMA)
S2: 0.7850 (Rising trendline)
S3: 0.7835 (Mar 30th lows)
Trade active:
The euro extended gains versus the pound, hit high at 0.7944, just two pips below 0.7946 (2016 highs).
The pair extends gains above 0.7900 in the wake of the euro area flash inflation figures released on Thursday.
Momentum still with the bulls, we see scope for further upside, minor resistance at 0.7947.
Breaks above will see tests of 0.7970 and then 0.80 levels.
Risk averse can book partial profits at 0.7945 levels, raise trailing stop to 0.79, target 0.7970/0.80
The pair extends gains above 0.7900 in the wake of the euro area flash inflation figures released on Thursday.
Momentum still with the bulls, we see scope for further upside, minor resistance at 0.7947.
Breaks above will see tests of 0.7970 and then 0.80 levels.
Risk averse can book partial profits at 0.7945 levels, raise trailing stop to 0.79, target 0.7970/0.80
Trade closed: target reached:
Targets almost hit @ 0.7993, book full profits
US NFP data to keep markets volatile.
EUR/GBP has strong resistance at 0.80 levels. Close above to see further upside.
US NFP data to keep markets volatile.
EUR/GBP has strong resistance at 0.80 levels. Close above to see further upside.