Wednesday, November 11, 2015

EUR/GBP off lows after Draghi speech

FXStreet (Mumbai) - The EUR/GBP pair trimmed losses after the ECB President Draghi’s speech turned out to be a non-event for the markets.

Fourth straight session of losses

The pair is down for the fourth straight session as the EUR/USD pair continues to underperform GBP/USD on account of the policy divergence between the ECB and the Fed. The currency pair had witnessed a sharp rally last Thursday after the BOE surprised markets with its dovish stance.

The focus now shifts to the final Eurozone CPI figure due for release tomorrow. The pair now trades around 0.7066 after having recovered hit a low of 0.7052.

EUR/GBP Technical Levels

The immediate resistance is seen at 0.7105 (hourly 50-MA), above which the pair could rise to 0.7120 (hourly 200-MA). A break above the same would expose 0.7145 (61.8% of 0.6931-0.7493). On the other side, support is seen at 0.7052 (daily low), under which the losses could be extended to 0.7042 (Nov 5 low). A break below the same would expose 0.70 handle.
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