EUR/GBP retreats sharply from six-day highs, back under 0.8350


  • EUR/GBP still on its way to post the first gain in five days.
  • Upside capped by the 20-day Simple Moving Average.

The EUR/GBP jumped on Tuesday from two-week lows near 0.8300 to reach 0.8382, the highest level since last Wednesday. During American hours it is pulling back, trading back under 0.8350, after being unable to hold above the 20-day simple moving average (0.8370).

From Ukraine to BoE comments

The pound weakened earlier on Wednesday following comments from Bank of England deputy governor Dave Ramsden. He said that “some further modest tightening in monetary policy is likely to be appropriate in the coming months”. His words were seen as less hawkish compared to his previous comments. A surprise approach considering that the latest economic report from the UK was firm.

The crisis in eastern Ukraine ratcheted up on Wednesday. Sanctions from the European Union and the US are expected to be announced at any time. An escalation of the conflict could weaken the euro further.

Key levels

A daily close above 0.8370 in EUR/GBP should clear the way for a test of the 0.8400 area that also contains the 55-day SMA. A recovery above should alleviate the bearish pressure. The next resistance stands at 0.8425/30.

On the downside, 0.8330 is again a support level to consider, followed by the 0.8300/05 zone. A consolidation below 0.8300 would point to more losses.

Technical levels

EUR/GBP

Overview
Today last price 0.8374
Today Daily Change 0.0056
Today Daily Change % 0.67
Today daily open 0.8318
 
Trends
Daily SMA20 0.8374
Daily SMA50 0.8392
Daily SMA100 0.8437
Daily SMA200 0.8502
 
Levels
Previous Daily High 0.8352
Previous Daily Low 0.8313
Previous Weekly High 0.8402
Previous Weekly Low 0.8328
Previous Monthly High 0.8423
Previous Monthly Low 0.8305
Daily Fibonacci 38.2% 0.8328
Daily Fibonacci 61.8% 0.8337
Daily Pivot Point S1 0.8303
Daily Pivot Point S2 0.8288
Daily Pivot Point S3 0.8264
Daily Pivot Point R1 0.8342
Daily Pivot Point R2 0.8367
Daily Pivot Point R3 0.8382

 

 

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