EUR/GBP Better Bid on Weaker GBP, Re-takes 0.8100

EUR/GBP Better Bid on Weaker GBP, Re-takes 0.8100

7 April 2016, 11:17
Roberto Jacobs

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)

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