EUR/GBP in a Tight Range Near 0.7630

EUR/GBP in a Tight Range Near 0.7630

27 May 2016, 08:29
Roberto Jacobs

EUR/GBP in a Tight Range Near 0.7630

The bounce off recent lows in the mid-0.7500s has found strong resistance in the low-0.7600s so far, leaving EUR/GBP slightly in red around 0.7630.

EUR/GBP focus on risk trends

The cross has so far managed to leave the area of 3-month lows following a recovery of the single currency while the upside momentum in the sterling seems to have diminished somewhat.

No relevant releases in Euroland and empty docket across the Channel will leave the cross to the mercy of the risk appetite trends, with US GDP figures poised to drive the sentiment later in the NA session.

EUR/GBP key levels

The cross is now losing 0.03% at 0.7633 and a breakdown of 0.7562 (low May 25) would expose 0.7523 (low Jan.22) and finally 0.7310 (low Jan.5). On the other hand, the initial hurdle aligns at 0.7758 (high May 23) followed by 0.7794 (20-day sma) and then 0.7860 (55-day sma).


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