EUR/GBP Fades the Spike to 0.8100

EUR/GBP Fades the Spike to 0.8100

7 April 2016, 07:56
Roberto Jacobs

EUR/GBP Fades the Spike to 0.8100

After climbing to fresh multi-month tops around 0.8100 the figure on Wednesday, EUR/GBP has given away some pips and has now returned to the 0.8075/70 band.

EUR/GBP focus on Draghi, ECB

The European cross is extending its rally on Thursday following a pick up in the buying interest around the single currency, exacerbated following yesterday’s FOMC minutes. Adding to the upbeat sentiment, “Brexit’ fears and a selling bias continue to weigh heavily on GBP.

Ahead in the session, the ECB will publish its minutes of the last meeting, although market’s attention will be on the speech by President Draghi during the afternoon in Europe.

EUR/GBP key levels

The European cross is now losing 0.02% at 0.8070 facing the next support at 0.7897 (20-day sma) ahead of 0.7825 (low Mar.29) and then 0.7792 (55-day sma). On the flip side, a breakout of 0.8105 (2016 high Apr.6) would expose 0.8349 (monthly high Feb.6 2014) and finally 0.8401 (2014 high Mar.18).

(Market News Provided by FXstreet)

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