EUR/GBP rockets to meet heavy supply, testing 0.74 handle

By FXStreet FXStreet (Guatemala) – EUR/GBP is currently trading at 0.7408 with a high of 0.7442 and a low of 0.7349.

EUR/GBP has rallied to the highest levels for five months as the euro gathers pace on the back of the dismal Nonfarm Payrolls result. The pair met supply at the aforementioned highs and has settled back to test the commitments of the bulls at 0.74 the figure. Nonfarm Payrolls came as just 142k vs the 203k consensus.

Analysts at Brown Brothers Harriman explained that the shockingly poor data will make upcoming numerous Fed official comments, including Fischer later today, all the more important. “Most observers did not expect an October move in any event. Officials may reassure that the Fed is looking at the larger picture, but it will take firmer employment data to convince a skeptical market.”

EUR/GBP levels

Technically, Karen Jones, chief analyst at Commerzbank explained EUR/GBP is losing upside momentum just ahead of tough resistance which extends from here to 0.7510 (this is the location of the previous 43 year uptrend, which should now act as resistance). “The May peak is found at 0.7482 and this should ideally cap the currency pair.” Jones added, “Minor support comes in …read more

Source:: FX Street