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EURGBP: 0.8475 Resistance On The Doorstep Print E-mail
Daily Forex Technicals | Written by | May 08 13 09:59 GMT

EURGBP: 0.8475 Resistance On The Doorstep

The stability in the euro has been impressive and it has been moving higher with global stock markets. It seems the global wall of central bank liquidity has helped to prop up the single currency even against the best efforts of the ECB, who have gone to extremes to try and limit EUR strength in recent months.

But has EURGBP gone too far? It is at a critical juncture and is testing key resistance at 0.8475 – the 100-day sma. EURGBP could go either way from here. From a fundamental perspective this cross looks ripe to be sold, especially as we lead up to the BOE meeting on Thursday when the Bank is expected to remain on hold. This contrasts with the ECB’s threat of negative deposit rates. However, from a technical perspective, if we get above 0.8475 this is a bullish development for this cross that opens the way to 0.8510.

Levels to watch:

  • 0.8475 – 100-day SMA and key resistance level.
  • Hearing rumours of sell orders building around 0.8500-10, which may thwart the bulls.
  • Support: recent lows at 0.8400.


In the short term a break above 0.8475 is a bullish development for this cross, but gains could be limited to 0.8500-10 ahead of tomorrow’s BOE meeting.


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DISCLAIMER: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase of sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

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