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21 Apr 2016
EUR/GBP turns positive on ECB comments
Euro pairs cheered comments from ECB President Mario Draghi that broad financing conditions have improved with EUR/GBP pair recovering sharply from 3-week lows of 0.7854 to turn positive before trading nearly unchanged from Wednesday's close.
Further recovery visible beyond 0.7900 mark
The pair is currently quoting at 0.7882, just below day high of 0.7893. If the Euro momentum turns out to be good enough, the pair could easily reclaim 0.7900 mark. Beyond 0.7900 mark, a short-term descending trend-channel resistance near 0.7935 could be on the card immediately.
On the downside, 0.7875 horizontal area, followed by day's low of 0.7854, are likely to act as immediate support levels. Failure to extend the recovery momentum and a subsequent drop back to day's low would be clearly indicate that bears are in full control. Break of these support levels exposes the trend-channel support, which is pegged near 0.7820 level.
Further recovery visible beyond 0.7900 mark
The pair is currently quoting at 0.7882, just below day high of 0.7893. If the Euro momentum turns out to be good enough, the pair could easily reclaim 0.7900 mark. Beyond 0.7900 mark, a short-term descending trend-channel resistance near 0.7935 could be on the card immediately.
On the downside, 0.7875 horizontal area, followed by day's low of 0.7854, are likely to act as immediate support levels. Failure to extend the recovery momentum and a subsequent drop back to day's low would be clearly indicate that bears are in full control. Break of these support levels exposes the trend-channel support, which is pegged near 0.7820 level.