EUR/GBP Supported at 0.7750 Ahead of ECB

EUR/GBP Supported at 0.7750 Ahead of ECB

2 June 2016, 11:55
Roberto Jacobs

EUR/GBP Supported at 0.7750 Ahead of ECB

The EUR/GBP cross failed another attempt to break through 0.7775 levels and drifted lower, reverting to the familiar range above the mid-point of 0.77 handle, before recovering some ground over the last hour.

EUR/GBP stuck in 25-pips tight range

Currently, the EUR/GBP pair trades almost unchanged at of 0.7757, revering a dip to session lows struck at 0.7752 in the last hour. The cross in the EUR/GBP is seen trading quite this Thursday, unable to find a clear direction, as markets remain wary ahead of the ECB policy decision due out later this session.

Moreover, the cross is recovering slightly following the UK construction PMI release, with the cable retracing gains after the PMI report missed estimates and disappointed markets once again.

All eyes now remain on the ECB policy outcome and the subsequent presser by the ECB Chief Draghi for further cues on the cross.

EUR/GBP Technical Levels   

To the upside, the next resistance is located at 0.7776 (11-day high) above which it could extend gains to 0.7830/35 (Daily R2/ May 18 High). To the downside immediate support might be located at 0.7733 (Daily Pivot/ 20-DMA) below that at 0.7700 (round number).


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