EURGBP is consolidating and price remains below key resistance at 0.8578, the Feb 20 high. MA studies continue to highlight a downtrend, however, a break of 0.8578 would signal a possible reversal. The cross has pulled back from its recent highs, a deeper retracement would expose support and the bear trigger at 0.8493, the Aug 23 low. Clearance of this level would confirm a resumption of the trend and open 0.8454, a Fibonacci retracement.
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Eurostoxx 50 futures remain firm and the contract is trading at its recent highs. Key resistance at the Dec 14 high of 4634.00 has recently been cleared. The break confirmed a resumption of the medium-term uptrend and sights are on the 4700.00 handle next. Initial firm support lies at 4586.80, the 20-day EMA. Key trend support has been defined at 4402.00, the Jan 17 low. A short-term pullback would be considered corrective.
Date | Time | Country | Event |
06-Feb | 0700 | DE | Manufacturing Orders |
06-Feb | 0830 | EU | S&P Global Final Eurozone Construction PMI |
06-Feb | 0900 | IT | ISTAT Business/Consumer Confidence |
06-Feb | 0900 | EU | ECB Consumer Expectations Survey |
06-Feb | 1000 | EU | Retail Sales |
07-Feb | 0700 | DE | Industrial Production |
07-Feb | 0745 | FR | Foreign Trade |
07-Feb | 0800 | ES | Industrial Production |
07-Feb | 0900 | IT | Retail Sales |
08-Feb | 1530 | EU | ECB's Lane at Brookings Institution |
09-Feb | 0700 | DE | HICP (f) |
09-Feb | 0900 | IT | Industrial Production |
09-Feb | 1415 | EU | ECB's Cipollone speaks at Assiom Forex Annual Congress |
10-Feb | 0900 | EU | The ECB Podcast on future euro banknotes |
12-Feb | 0945 | EU | ECB's Lane at conference on statistics post pandemic |
12-Feb | 1315 | EU | ECB's Lane participates in 'post-pandemic' roundtable |
12-Feb | 1550 | EU | ECB's Cipollone participates in panel on Euro@25 |
EURGBP bears remain in the driver’s seat despite Monday’s recovery - a correction. Moving average studies remain in a bear-mode position highlighting a clear bearish theme. The break in January of support at 0.8549, the Dec 11 low, strengthened current conditions and sights are on 0.8493, Aug 23 ‘23 low and a key support. The 50-day EMA - at 0.8599 - is the firm resistance to watch. A clear break of the average would concern bears.