EUR/GBP bears taking control in turnaround markets, testing key trendline support

EUR/GBP breaking down the doors of the supporting trendline.
EUR/GBP 0.8920 capped, 0.8880 needs to hold.

Ross J Burland FXStreet

EUR/GBP has given back some ground in a choppy bid in the cross from the recent lows of 0.8777 (Feb 9.) to recent Valentine's Day 0.8919 highs.
Currently, EUR/GBP is trading at 0.8890, down -0.09% on the day, having posted a daily high at 0.8922 and low at 0.8887.

US data response, retails sales and CPI - Capital Economics

EUR/GBP has been driven by flows in cable that has rallied up through the 200-hr SMA at 1.3934 and has reached a recent high of 1.3965 on the back of a sell-off in the greenback, DXY -0.18% that is currently trading at 89.53 within a range of between 89.378 - 90.124 for the day so far.

UK inflation in line with expectations but careful with doldrums risk

89.80 support gave out despite the CPI beat. (The VIX dropped below 20 after a high of 25.72 allowing for a bounce in stocks post-CPI data decline and weakness in the greenback).

Price action overnight and levels

Meanwhile, we had a data dump of a session overnight in European numbers where the euro was -0.03% on the session and where EUR/GBP rose to a five-week high of 0.8920 during the same session. (0.8910 was Tuesday's high. 0.8927 marks the 2018 high (Jan 12))EZ Q4 GDP matched the forecast of 0.6% qq and 2.7% yy while EZ IP came in at 5.2% yy and beat the 4.2% forecast.

EUR/GBP levels

On a break of 0.8880 trendline support, bears will have 0.8770 ahead of the December and January lows at 0.8689/87 on their map. Should the trend line hold and price correct back into the ascending channel in a northerly trajectory, the top of a shallow channel at 0.8962 through 0.8936 January high and the 0.9034 October 2017 high ahead of 0.9071/0.9175 61.8% and 78.6% Fibonacci retracements.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD: Bears retain control below 1.1780-1.1770 confluence breakpoint

The EUR/USD pair remains on the back foot through the Asian session on Friday and currently trades just above mid-1.1700s, well within striking distance of a nearly one-month low set the previous day.

GBP/USD seems vulnerable near one-month low vs. USD as traders await US data

The GBP/USD pair prolongs its weekly downtrend for the fifth consecutive day on Friday and slides back closer to a nearly one-month low, touched the previous day. Spot prices trade below mid-1.3400s during the Asian session on Friday and seem vulnerable to slide further as traders now look to important US macro data for a fresh impetus.

Gold eyes next breakout on US GDP, PCE inflation data

Gold sticks to recent gains around the $5,000-mark early Friday, biding time before the high-impact US macro events. The focus is now on the US fourth-quarter Gross Domestic Product, core Personal Consumption Expenditures Price Index and the Supreme Court’s ruling on President Donald Trump’s tariffs.

Bitcoin, Ethereum and Ripple remain range-bound as breakdown risks rise

Bitcoin, Ethereum, and Ripple are trading sideways within consolidation ranges on Friday, signaling a lack of directional bias in the broader crypto market. BTC rebounded from key support, and ETH is nearing the lower consolidation boundary, while XRP is holding at its lower trendline boundary.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.