EUR/GBP: closing on the 0.89 handle

Ross J Burland FXStreet

Currently, EUR/GBP is trading at 0.8900, up 0.03% on the day, having posted a daily high at 0.8925 and low at 0.8856.

EUR/GBP was moving in big pips once again at the start of the week on Monday, rallying from 0.8856 the low to 0.8922 the high. EUR/GBP climbed up to test the region of congestion ahead of the 0.8930 high posted on the 13th October. The cross was breaking through the 4hr-50 SMA at 0.8897, supported by the 0.8880 support area (4hr 21-SMA) 0.8884 on an early dip in NY's morning where the high was made at 0.8922 towards the close before settling a pip or so into the 0.89 handle.

Fundamentally, Brexit nerves continue to be passed on from desk to desk and cable came a cropper after rumours that Brexit talks were stalling on trade, with the process at risk of collapsing without the EU's concession on the current demands while PM May doesn't seem to show any signs of budging on the EUR20b offer vs the EUR60 b the Brussels was looking for - eyes on the EU summit this week.

Meanwhile, on Tuesday, markets will be turning to the retail price index, as well as PPI, and the CPI data. The consumer inflation is expected to advance to 3% on a yearly basis where much of the focus will be in respect to the speculation that the BoE will be in a position to hike interest rates as soon as next month.

EUR/GBP levels

On a break of the 0.89 handle and a look in at the 0.90 handle, as analysts at Commerzbank mentioned, the cloud at 0.9025 and the 50% retracement at 0.9027 are next stops. On the way down, below 0.8880 and 0.8780, the next major band of support extends from the 14th July low at 0.8748 to 0.8720 being the 2015-2017 uptrend and where the 200-day ma and where the 55-week MA is also located.

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 tests nine-day EMA support near 1.1850

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1870 during the Asian hours on Friday. The 14-day Relative Strength Index momentum indicator at 56 stays above the midline, confirming steady momentum. RSI has eased but remains above 50, indicating momentum remains constructive for the bulls.

GBP/USD consolidates around 1.3600 vs. USD; looks to US CPI for fresh impetus

The GBP/USD pair remains on the defensive through the Asian session on Friday, though it lacks bearish conviction and holds above the 1.3600 mark as traders await the release of the US consumer inflation figures before placing directional bets.

Gold recovers swiftly from weekly low, climbs back closer to $5,000 ahead of US CPI

Gold regains positive traction during the Asian session on Friday and recovers a part of the previous day's heavy losses to the $4,878-4,877 region, or the weekly low. The commodity has now moved back closer to the $5,000 psychological mark as traders keenly await the release of the US consumer inflation figures for more cues about the Federal Reserve's policy path.