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5 Feb 2016
EUR/GBP nears 0.77 handle, poised for a weekly gain?
The bid tone around EUR/GBP pair regained pace in Asia, pushing it closer to 0.77 handle in the early European session.
Weekly gain on cards
At 0.7692 the pair is up at least 90-pips from its weekly opening rate of 0.7602. Compared to the weekly low of 0.7526, the cross is up more than 150 pips. Consequently, the pair appears on track to end the week higher, given the probability of a 90 pip drop is low due to the light economic calendar across Europe.
Furthermore, the US non-farm payrolls figure is unlikely to see EUR underperform significantly compared to Cable; irrespective of whether the figure is strong or weak.
EUR/GBP Technical Levels
The immediate resistance is seen at 0.77, above which the cross could test 0.7755 (Jan 20 high). On the other hand, a break below 0.7666 (Jan 27 high) could see the pair slide to 0.7615 (10-DMA).
Weekly gain on cards
At 0.7692 the pair is up at least 90-pips from its weekly opening rate of 0.7602. Compared to the weekly low of 0.7526, the cross is up more than 150 pips. Consequently, the pair appears on track to end the week higher, given the probability of a 90 pip drop is low due to the light economic calendar across Europe.
Furthermore, the US non-farm payrolls figure is unlikely to see EUR underperform significantly compared to Cable; irrespective of whether the figure is strong or weak.
EUR/GBP Technical Levels
The immediate resistance is seen at 0.77, above which the cross could test 0.7755 (Jan 20 high). On the other hand, a break below 0.7666 (Jan 27 high) could see the pair slide to 0.7615 (10-DMA).