EUR/GBP bid despite bank divergences

By FXStreet FXStreet (Guatemala) – EUR/GBP is currently trading at 0.7011 with a high of 0.7026 and a low of 0.6982.

EUR/GBP has been choppy in a rising trend while EUR/USD squeezes underpinning the bid. GBP/USD on the other hand has fallen away below the 1.53 handle at time of writing and further supports the upside in the cross. This is all despite the dovish tone from ECB members and may be a technical action more than a change in sentiment where the cards are down for a BoE rate hike in the new year, a Fed hike likely in Dec and the ECB expending their QE programme in the wake of yet further deflationary headwinds.

EUR/GBP levels

Technically, Karen Jones, chief analyst at Commerzbank explained that daily Elliott wave count is indicating a 0.7075/.7130 rally ahead of another leg lower. “Above here initial resistance lies at 0.7196/98, the recent high, and major resistance continues to be seen at 0.7492 (this is the location of the 2013-2015 downtrend). We will maintain our bearish view while capped here. We note the 13 count on the 240 minute and will sell on rallies.”
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Source:: FX Street