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9 Sep 2013
EUR/GBP trends upwards as Syria jitters fade away
FXstreet.com (Athens)- The EUR/GBP is trading higher since the opening in Asian trading session on better euro land data, as well as on promising statements on Syria’s issue.
The sterling is outperforming across the board, but still EUR/GBP is heading upwards
UK Chancellor Osborne said earlier that UK is in early stages of recovery, while premature tightening could do harm. Thus, “sterling” boosted across the board but not against the single currency. The common currency seems to find support on a couple of reasons, but most of all due to the fact that UK Foreign Secretary Hague said that ”UK and US share revulsion over the Syria attack, during joint press conference with US's Kerry.” Elaborating on, as long as war jitters in Syria fading away, in combination with earlier solid euro land Sentix confidence data and ahead of a very light calendar day, traders should not be taken aback with that trend behavior. Last but not least, investors should take into deep consideration the fact that the only UK data this week are due on Wednesday.
Technical Outlook on EUR/GBP
A bullish hammer at channel support by April/May lows near 0.8400 suggest that a bounce may be in order. At the time of writing the pair is trading at 0.8414, down 0.19%. Technically speaking, a decent daily break below 0.8487 (61.8% Fib) will expose the 0.8448 (76.4% Fib) as the next objective, while a reversal back above 0.8487 on a daily closing basis targets 0.8518 (50% Fib expansion). The FXstreet.com Trend Index shows the pair to be strongly bearish in a 15-minutes time framework. Daily pivot point support can be found at 0.8420, 0.8395, 0.8374, and resistance at 0.8600, 0.8622, 0.8698 respectively.
The sterling is outperforming across the board, but still EUR/GBP is heading upwards
UK Chancellor Osborne said earlier that UK is in early stages of recovery, while premature tightening could do harm. Thus, “sterling” boosted across the board but not against the single currency. The common currency seems to find support on a couple of reasons, but most of all due to the fact that UK Foreign Secretary Hague said that ”UK and US share revulsion over the Syria attack, during joint press conference with US's Kerry.” Elaborating on, as long as war jitters in Syria fading away, in combination with earlier solid euro land Sentix confidence data and ahead of a very light calendar day, traders should not be taken aback with that trend behavior. Last but not least, investors should take into deep consideration the fact that the only UK data this week are due on Wednesday.
Technical Outlook on EUR/GBP
A bullish hammer at channel support by April/May lows near 0.8400 suggest that a bounce may be in order. At the time of writing the pair is trading at 0.8414, down 0.19%. Technically speaking, a decent daily break below 0.8487 (61.8% Fib) will expose the 0.8448 (76.4% Fib) as the next objective, while a reversal back above 0.8487 on a daily closing basis targets 0.8518 (50% Fib expansion). The FXstreet.com Trend Index shows the pair to be strongly bearish in a 15-minutes time framework. Daily pivot point support can be found at 0.8420, 0.8395, 0.8374, and resistance at 0.8600, 0.8622, 0.8698 respectively.