29 Mar 2016
EUR/GBP strengthens as GBP sell-off gains pace
Normalized volumes is undoing the holiday-thinned rally in Cable, thereby pushing the EUR/GBP cross higher to 0.7872 levels.
Brexit fears weigh
Sterling is being offered in Europe as Brexit fears remain intact. The Three-month implied volatility gauge rose to almost six-year high last week, indicating investors are bracing up for a sharp swings.
Still, gains in the cross are hard to come, given the positive action in the European stocks is keeping EUR under pressure. Cross recovered from the low of 0.7845 largely on the back of weakness in Cable.
EUR/GBP Technical Levels
The immediate hurdle is seen at 0.7886 (5-DMA), above which prices could test 0.7911 (Mar 17 high) and 0.7928 (Feb 25 high). On the other hand, a break below 0.7845 (daily low) would expose 0.78 handle under which prices could test 0.7774 (Mar 18 low).
Brexit fears weigh
Sterling is being offered in Europe as Brexit fears remain intact. The Three-month implied volatility gauge rose to almost six-year high last week, indicating investors are bracing up for a sharp swings.
Still, gains in the cross are hard to come, given the positive action in the European stocks is keeping EUR under pressure. Cross recovered from the low of 0.7845 largely on the back of weakness in Cable.
EUR/GBP Technical Levels
The immediate hurdle is seen at 0.7886 (5-DMA), above which prices could test 0.7911 (Mar 17 high) and 0.7928 (Feb 25 high). On the other hand, a break below 0.7845 (daily low) would expose 0.78 handle under which prices could test 0.7774 (Mar 18 low).