Thursday, November 12, 2015

EUR/GBP testing highs near 0.7070

FXStreet (Edinburgh) - The bid tone prevailing in both the pound and the shared currency is prompting EUR/GBP to attempt a test of the upper bound of the range near 0.7070/75.

EUR/GBP attention to EMU data, Draghi

The cross is posting meager gains for the first time in the week, although it remains confined to trade in the area of 2-month troughs below the 0.7100 handle. There are no major catalysts so far, while traders keep digesting the recent dovish tone from the Bank of England and the possibility that the European Central Bank could announce additional easing measures at its meeting in December.

Data wise in Euroland, October’s German final CPI and EMU’s Industrial Production are due later, followed by speeches by President M.Draghi and Council member Y.Mersch.

EUR/GBP relevant levels

As of writing the cross is up 0.17% at 0.7073 and a surpass of 0.7129 (downtrend from 0.7496) would expose 0.7146 (23.6% Fibo of 0.7496-0.7038) and then 0.7204 (100-day sma). On the other hand, the initial support aligns at 0.7038 (low Nov.5) followed by 0.7000 (psychological level) and finally 0.6934 (2015 low Jul.17).
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