EUR/GBP building on to its strength above 0.8600 handle

Haresh Menghani FXStreet

Following a consolidation phase during the major part of current trading week, the EUR/GBP cross finally seems to have broken out and is now building on to its strength above 0.8600 handle.

Currently trading near session high level around 0.8615 region, the cross gained upside momentum amid renewed selling pressure around the British Pound after UK foreign minister Boris Johnson, speaking to the BBC and Sky News, said that Article 50, to begin the Brexit process, would be triggered in early 2017.

Meanwhile, a mixed reading from the preliminary release of Euro-zone PMI prints for the month of September failed to attract any fresh buying interest around the shared currency, restricting the pair within weekly trading range.

Technical levels to watch

Immediate upside resistance is pegged at 0.8630 (weekly high), which if cleared decisively should lift the pair immediately towards 0.8660 horizontal resistance. On the downside, slide back below 0.8600 handle, and a subsequent weakness below 0.8585 level, would reaffirm near-term range-bound price action and take the pair back to the lower end of the range support near 0.8560 level.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 0.8591

86% Bullish
14% Bearish
0% Sideways

Bias Bullish

1 Month

Avg Forecast 0.8513

38% Bullish
46% Bearish
15% Sideways

Bias Bearish

1 Quarter

Avg Forecast 0.8614

45% Bullish
18% Bearish
36% Sideways

Bias Bullish

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD weakens to four-week lows near 1.1750

EUR/USD’s selling pressure is gathering pace now, approaching the area of multi-week troughs in the mid-1.1700s on Thursday. The pair’s intense decline comes on the back of another day of solid gains in the US Dollar, particulalry exacerbated following firm prints from the weekly US labour market.

GBP/USD drops further, hovers around 1.3460

In line with the rest of its risk-linked peers, GBP/USD faces increasing selling pressure and recedes toward the 1.3460 region, or four-week lows, on Thursday. Cable’s persistent pullback comes in response to the continuation of the recovery in the Greenback amid a solid US data and a divided FOMC when it comes to the Fed’s rate path.

Gold clings to daily gains near $5,000

Gold struggles for direction and clings to its daily gains around the key $5,000 mark per troy ounce on Thursday. The precious metal sticks to the bid bias amid reignited geopolitical tensions in the Middle East and despite marked gains in the US Dollar and rising US Treasury yields across the curve.

Ripple slips toward $1.40 despite SG-FORGE tapping protocol for EUR CoinVertible

XRP extends its decline, nearing $1.40 support, as risk appetite fades in the broader market. SG-FORGE’s EUR CoinVertible launches on the XRP Ledger, leveraging the blockchain’s scalability, speed, security, and decentralization.

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.