EUR/GBP losing upside conviction

By FXStreet FXStreet (Guatemala) – EUR/GBP is currently trading at 0.7567 with a high of 0.7650 and a low of 0.7525.

EUR/GBP’s upside ran out of steam at the end of this week, instigated by Draghi’s dovish press conference when he explained the downside risks had increased at the end of last year and low inflation was expected to remain negative in coming months and that the ECB will reconsider policy in March. This offered sterling some relief while next week the UK will come under the spotlight with GDP Q4 expected 0.5% q/q and if in line should reveal an economy gradually moving back towards trend.

EUR/GBP levels

Technically, Karen Jones, chief analyst at Commerzbank explained that we have seen the market rally towards and halt just ahead of the 0.7762 2012 low. “This is quite a pivot point and is regarded as formidable resistance near term. We would allow for a dip lower towards the 0.7573 23.6% retracement. Dips lower should remain well supported circa 0.7492, the October high and 0.7471 the short term uptrend.”
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Source:: FX Street