HomeContributorsTechnical AnalysisEUR/GBP Outlook: Upbeat UK Data Add To Negative Tone, Bears Eye Key...

EUR/GBP Outlook: Upbeat UK Data Add To Negative Tone, Bears Eye Key Support At 0.8763

The cross accelerates lower after pound got boosted by UK earnings beat (3.4% vs 3.3% f/c, as pay growth hit 10-year high) and upbeat employment data (employment grew 141K in three months to the end of Nov vs 88K f/c and previous period’s 79K growth).

Negative German ZEW data, although economic sentiment weakened less than expected (Jan -15 vs -18.4 f/c) added to negative sentiment.

Monday’s strong upside rejection (recovery was capped by 200SMA at 0.8861) left bearish daily candle with long upper shadow that weighs on near-term outlook.

Strong bearish momentum and daily MA’s in negative setup, with a number of bear-crosses, add to bearish sentiment.

The pair focuses key near-term support at 0.8763 (17/18 Jan double-bottom / Fibo 76.4% of 0.8656/0.9113), violation of which would open way for full-retracement of 0.8656/0.9113 rally.

Bearish structure is expected to remain intact while the price holds below 200SMA.

Res: 0.8830, 0.8861, 0.8880, 0.8902
Sup: 0.8763, 0.8696, 0.8656, 0.8620

Windsor Brokers Ltd
Windsor Brokers Ltdhttp://www.windsorbrokers.com/
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

Featured Analysis

Learn Forex Trading