EUR/GBP rebounds sharply from two-months lows, back above 0.8950


EUR/GBP rebounds sharply from two-months lows, back above 0.8950

Euro reverses dramatically across the board, erases ECB losses. 
EUR/GBP climbs more than 70 pips from the bottom. 

The EUR/GBP pair rebounded sharply on Thursday and turned positive for the day, erasing all the decline that followed the European Central Bank (ECB) decision. 

The central bank cut the deposit rate by 10 basis points to -0.5% and announced a new round of the purchase program starting November 1, for EUR20bn per month, among other measures. The Euro bottomed at the beginning of Draghi’s press conference but then bounced to the upside, gaining more traction during on American hours. 

“While EUR sold off after the ECB announced the easing package, the press conference delivered a reality check. Although the QE is open-ended, the ECB did not discuss changing the limits on asset purchases. Without a change to the limits on purchases, our rates team suggests that the ECB can do QE of EUR 20bn pm for just over a year”, said ING analysts. According to them, the Euro climbed back above as “the open-endedness is not fully set in stone.”

Regarding Brexit, the latest headlines did not have an impact on the Pound. Business Insider reported that leaked documents show the European Union is looking to grant another Brexit extension. EUR/GBP remained near the top after the report, holding into positive territory. 

The pair recently reached 0.8966, close to the European session high (0.8970) and as of writing trades at 0.8955, up 25 pips for the day, about to post the first daily gain in four days. 

More levels

EUR/GBP

Overview
Today last price 0.8962
Today Daily Change 0.0032
Today Daily Change % 0.36
Today daily open 0.893
 
Trends
Daily SMA20 0.9053
Daily SMA50 0.9068
Daily SMA100 0.8934
Daily SMA200 0.8843
Levels
Previous Daily High 0.8952
Previous Daily Low 0.8905
Previous Weekly High 0.915
Previous Weekly Low 0.894
Previous Monthly High 0.9326
Previous Monthly Low 0.9016
Daily Fibonacci 38.2% 0.8923
Daily Fibonacci 61.8% 0.8934
Daily Pivot Point S1 0.8906
Daily Pivot Point S2 0.8882
Daily Pivot Point S3 0.8858
Daily Pivot Point R1 0.8953
Daily Pivot Point R2 0.8976
Daily Pivot Point R3 0.9001

 

 

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