EUR/GBP: strong rally through 200 SMA

By FXStreet FXStreet (Guatemala) – EUR/GBP is currently trading at 0.7326 with a high of 0.7338 and a low of 0.7232.

EUR/GBP has been a good bid up from the 50 SMA support and through the 200 SMA with a robust euro and a decent recovery vs the pound while the greenback takes sterling down below the 1.53 handle as it it plummeted over a cent.

Analysts at Rabobank explained the Eurozone has also been subject to an increase in headwinds. “The ECB has made no effort to counter market speculation that the governing council could broaden its QE package in the coming months and in our view the ECB could announce an increase in its monthly asset purchases as soon as December.”

EUR/GBP headed to 0.70 longer term

“The downside pressure this would imply for the EUR/GBP adds weight to the arguments in favour of low for longer rates from the BoE. It also leaves in place our expectation that EUR/GBP will trend towards 0.70 on a 6 to 9 mth view.”
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Source:: FX Street