EUR/GBP down to test key support and catches demand

By FXStreet FXStreet (Guatemala) – EUR/GBP is currently trading at 0.7295 with a high of 0.7359 and a low of 0.7266.

EUR/GBP is recovering from the aforementioned lows when the bird the dropped below the 200 SMA at 0.7311. The move started at the mid-point of the handle in Asia, but was exacerbated when GBP/USD rallied strongly in early European markets from 1.5339 to 1.5527 while /Carney gave an upbeat outlook for the UK economy at the same time EUR/USD was moving lower.

EUR/GBP key support

Technically, however, Karen Jones, chief analyst at Commerzbank explained that they look for dips lower to be contained by the uptrend at 0.7211 and while it holds, an upside bias will remain intact.

“The market has recently failed at the top of a 6 month channel (.7406) and will need to clear the 0.7421 recent high to retarget the 0.7482 May high ahead of the 0.7468 55 week ma. We suspect from a longer term point of view that the market will fail in this vicinity.”
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Source:: FX Street