The EUR/GBP cross reversed early gains to 0.8700 handle and has now drifted into negative territory as BOE Governor Mark Carney testimony before the Parliament's Treasury Select Committee got underway.
Currently trading around 0.8660, Carney's initial comments that Brexit is not the biggest financial stability risk for the UK, extended some support to the British Pound and collaborated to the pair's reversal move from 0.8700 handle. It is, however, worth reporting that Carney is unlikely to comment on the central bank's monetary policy stance and hence, focus would remain on how the central bank might deal with Brexit.
Moreover, market also seems to have digested disappointing UK goods trade balance data, which negated strong manufacturing and industrial production growth and helped the cross reverse Tuesday’s reversal move from two-month peak.
Meanwhile, a fresh bout of selling pressure around the shared currency, with the EUR/USD major breaking below 1.0500 psychological mark, is also contributing to the slide witnessed in the last hour.
Technical levels to watch
A follow through retracement below 0.8650 immediate support is likely to drag the cross towards 100-day SMA support near 0.8630 region below which the slide could further get extended towards sub-0.8600 support near 0.8580-75 region.
Meanwhile on the upside, 0.8700 handle now becomes immediate hurdle, which if conquered would trigger a fresh leg of up-move, initially towards 0.8730 level and eventually to yesterday's two-month high resistance near 0.8765 region.
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.
Recommended content
Editors’ Picks
EUR/USD holds below 1.0750 ahead of key US data
EUR/USD trades in a tight range below 1.0750 in the European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
GBP/USD consolidates above 1.2500, eyes on US PCE data
GBP/USD fluctuates at around 1.2500 in the European session on Friday following the three-day rebound. The PCE inflation data for March will be watched closely by market participants later in the day.
Gold clings to modest daily gains at around $2,350
Gold stays in positive territory at around $2,350 after closing in positive territory on Thursday. The benchmark 10-year US Treasury bond yield edges lower ahead of US PCE Price Index data, allowing XAU/USD to stretch higher.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.