EUR/GBP stuck in a narrow trading band around 0.8550

Haresh Menghani FXStreet

The EUR/GBP cross was confined in a 40-pips narrow band on Friday, now trading around mid-point of the trading range around 0.8550 region.

Ahead of the Fed Chair Janet Yellen's speech at Jackson Hole symposium, which would provide fresh insights over the central bank's monetary policy outlook for 2016 and could trigger a fresh bout of volatility across global financial market, market sentiment remains cautious and has led to range-bound price action around the EUR/GBP cross.

Even the release of UK GDP growth figures for Q2 of 2016, which were in-line with market expectations, failed to provide any impetus for the cross, which seems all set to post first weekly loss in the previous five.

Technical levels to watch

On the downside, 0.8500 psychological mark will key support to defend, below which the cross seems to extend its corrective move towards testing sub-0.8400 level, nearing 50-day SMA. On the upside, momentum above 0.8565-70 immediate resistance is likely to get extended towards 0.8600 round figure mark.

Author

Haresh Menghani

FXStreet

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

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