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3 Mar 2015
EUR/GBP bounced off 0.7260
FXStreet (Edinburgh) - After dipping to the 0.7260 area, EUR/GBP has almost fully recovered the drop and is now trading back to the 0.7280 region.
EUR/GBP remains bearish
Despite the rebound from fresh multi-year lows around 0.7230 on Monday, the outlook on the European cross remains negative, backed by the broader divergence in monetary policies from the ECB and the BoE.
In addition, while the UK economy has been outperforming its European peers in recent quarters, the euro area has been advancing at a snail pace, slow but also relentlessly, collaborating with the bearishness around the cross.
EUR/GBP relevant levels
At the moment the cross is now up 0.06% at 0.7282 and a break above 0.7301 (high Mar.2) would aim for 0.7321 (10-d MA) and finally 0.7326 (high Feb.26). On the flip side, the initial support lines up at 0.7235 (2015 low Mar.2) followed by 0.7108 (monthly high Dec.2004) and then 0.7100 (psychological level).
EUR/GBP remains bearish
Despite the rebound from fresh multi-year lows around 0.7230 on Monday, the outlook on the European cross remains negative, backed by the broader divergence in monetary policies from the ECB and the BoE.
In addition, while the UK economy has been outperforming its European peers in recent quarters, the euro area has been advancing at a snail pace, slow but also relentlessly, collaborating with the bearishness around the cross.
EUR/GBP relevant levels
At the moment the cross is now up 0.06% at 0.7282 and a break above 0.7301 (high Mar.2) would aim for 0.7321 (10-d MA) and finally 0.7326 (high Feb.26). On the flip side, the initial support lines up at 0.7235 (2015 low Mar.2) followed by 0.7108 (monthly high Dec.2004) and then 0.7100 (psychological level).