EUR/GBP dips further to test 0.8450 support area


  • The euro resumes its downtrend to hit 19-month lows at 0.8450.
  • The pound remains bid on BoE hike expectations.
  • A sustained move below 0.8437 would accelerate the downtrend – Credit Suisse.

The euro has resumed its negative trend against the British pound on Thursday, hitting prices below 0.8470 for the first time since last August, to test 19 month-lows at 0.8450, which so far has resisted the pressure.

The pound remains firm on BoE tightening expectations

The British pound maintains a firm tone, buoyed by market expectations of a BoE rate hike early next year, and probably further tightening to follow to tackle inflationary pressures. Surging energy prices have pushed yearly inflation to levels almost twice the Bank of England’s target for price stability which has prompted some Bank officials to admit the possibility of accelerating the monetary policy normalization plan.

Furthermore, the European Union’s proposal to scrap custom checks for products arriving in Northern Ireland from Britain has eased fears about another stand-off with the Union, which has increased demand for the pound.

EUR/GBP: Breach of 0.8437 would accelerate the downtrend – Credit Suisse

According to the Credit Suisse's FX Analysis team expect the 0.8449/37 support area to hols although, they warn about the possibility of downward acceleration if such level is broken: “Whilst we would again look for a fresh hold at 0.8449/37 and swing higher in the channel, a sustained move below 0.8437 would mark an acceleration in the downtrend, then exposing the key lows of 2019 and 2020 at 0.8281/39.”

Technical levels to watch

EUR/GBP

Overview
Today last price 0.8475
Today Daily Change -0.0010
Today Daily Change % -0.12
Today daily open 0.8485
 
Trends
Daily SMA20 0.8545
Daily SMA50 0.8543
Daily SMA100 0.8558
Daily SMA200 0.8625
 
Levels
Previous Daily High 0.8498
Previous Daily Low 0.8473
Previous Weekly High 0.8574
Previous Weekly Low 0.8475
Previous Monthly High 0.8658
Previous Monthly Low 0.8501
Daily Fibonacci 38.2% 0.8488
Daily Fibonacci 61.8% 0.8482
Daily Pivot Point S1 0.8473
Daily Pivot Point S2 0.846
Daily Pivot Point S3 0.8448
Daily Pivot Point R1 0.8498
Daily Pivot Point R2 0.851
Daily Pivot Point R3 0.8522

 

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD gains traction and climbs above 1.1600 after US data

After dropping below 1.1600 earlier in the day, EUR/USD managed to stage a recovery in the early American session toward 1.1620 with the latest data releases from the US making it difficult for the greenback to find demand. US trade deficit expanded in September and durable goods orders contracted. 

EUR/USD News

GBP/USD stays in the negative territory around mid-1.3700s

GBP/USD recovered modestly from the weekly low it set at 1.3710 earlier in the day but continues to trade in the negative territory around 1.3750. The dollar is staying on the back foot after the latest data releases but the cautious mood is limiting the pair's upside.

GBP/USD News

XAU/USD inches closer to $1,800 amid sliding bond yields/weaker USD

Gold attracted some dip-buying for the second successive day on Wednesday. Retreating US bond yields, weaker USD acted as a tailwind for the commodity. Hawkish central bank expectations might continue to cap gains for the metal.

Gold News

Shiba Inu price to provide buy opportunity before SHIB doubles again

Shiba Inu price is due for a retracement after rallying 113% in less than three days. The MRI displays a major sell signal, hinting at a correction that could extend 17%.

Read more

Wake Up Wall Street: Microsoft, McDonald's lead futures higher

McDonald's (MCD) quarterly earnings came in before the market opens on Wednesday and delighted on both top and bottom lines. Microsoft reported easy beats on revenue and EPS as well.

Read more

Forex MAJORS

Cryptocurrencies

Signatures