EUR/GBP Better Bid on Weaker GBP, Re-takes 0.8100
The cross in the EUR/GBP
witnessed a volatile European session so far, as the staunch remarks
from ECB Chief Draghi did little to help the shared currency against
sterling.
EUR/GBP retreats from 1-1/2 year tops
Currently,
the EUR/GBP pair trades 0.24% higher at 0.8091, struggling to rise
above 0.81 barrier. The EUR/GBP cross rallied for the third straight
session today and reached the highest levels in one-and-a half year
after the pound faced heavy selling pressure amid worsening risk
sentiment as the European equities give up almost entire gains tracking
the oil price action.
However, over the last hour, the cross
trimmed gains and eased-off multi-month highs following ECB President
Draghi’s remarks noted in the ECB annual report, with the euro reacting
negatively to the central banker’s comments. Draghi noted, “We face
continued disinflationary forces. And we face questions about the
direction of Europe and its resilience to new shocks. In that
environment, our commitment to our mandate will continue to be an anchor
of confidence for the people of Europe.”
Looking ahead, the
cross now awaits the ECB monetary policy meeting accounts for fresh
insights on the ECB’s easing measures unveiled last month.
EUR/GBP Technical Levels
To
the upside, the next resistance is located at 0.8117 (Daily high),
above which it could extend gains to 0.8150 (June 2014 high). To the
downside immediate support might be located at 0.8040 (5-DMA) below that
at 0.8023/00 (1h 100-SMA/ round number).
(Market News Provided by FXstreet)
