Monday, September 28, 2015

EUR/GBP weaker, deflates to 0.7350

FXStreet (Edinburgh) - The softer tone in both the euro and the sterling is pushing EUR/GBP to test the area of daily lows in the 0.7355/50 band.

EUR/GBP keeps the narrow range

The cross is extending into the European morning the tight range that prevailed overnight, where it has climbed as high as the boundaries of 0.7380. The up move however, lacked of follow through, triggering the current knee-jerk in a context where the risk aversion is poised to dominate the session.

Absent releases in Euroland and the UK, the risk appetite trends will again be the dominant theme, while PCE figures and speeches by Fed’s Evans and Williams will take centre stage in the US docket.

EUR/GBP relevant levels

As of writing the cross is down 0.24% at 0.7356 with the next support at 0.7303 (low Sep.25) ahead of 0.7238 (low Sep.23) and finally 0.7196 (low Sep.21). On the flip side, a break above 0.7370 (high Sep.25) would expose 0.7394 (high Sep.1) and then 0.7411 (high Sep.24).
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