EUR/GBP dips back under 0.8400 on technical selling/“dovish” Lagarde commentary, will bulls buy the dip? By Frank_Macro EURGBP ECB BOE Growth
Technical selling on the break of a descending triangle and “dovish” comments from ECB’s Lagarde sent EUR/GBP back under 0.8400.
EUR/GBP broke below a short-term descending triangle on Friday as the euro weakened on further dovish sounding rhetoric from ECB Presidentand as pound sterling saw some relief after not as bad as feared December GDP figures. Though the pair had been consistently posting lower highs since the start of the week, support at 0.8410 had been holding firm. That support broke during the late Asia Pacific session/early European session trade, with EUR/GBP having now dipped back below the 0.
“The recovery will probably lose momentum in the course of the year” analysts at Commerzbank noted. “High inflation, tax increases in April and the BoE's interest rate hikes are a burden on the economy” they continued. The British Chambers of Commerce agrees. Its head of economics Suren Thiru stated that “the UK economy is facing a materially weaker 2022 as the crippling burden of rising inflation, soaring energy bills and higher taxes on consumers and businesses dampens activity.
The net result might be that EUR/GBP has finally become a “buy on dips” rather than a “sell on rallies”, at least as far as longer-term swing traders are concerned. The 50% Fibonnaci retracement back from this week’s multi-week highs in the upper 0.8400s to last week’s sub-0.8300 lows at 0.8380 might well be such a level where traders are enticed to buy the pullback.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bitcoin metrics demand BTC price gains as analysis calls for ‘near-term caution’BTC price action may dip below $40,000 before the overall recovery continues for Bitcoin bulls.
Read more »
EUR/USD set to dip towards 1.13 after strong US CPI report – TDSConsumer prices exceeded expectations in January, rising a strong 0.6% MoM. In the view of economists at TD Securities, a strong CPI print will keep t
Read more »
Bitcoin's 30% recovery in two weeks has BTC whales back in accumulation modeThe net supply into Bitcoin addresses holding at least 1,000 BTC rises alongside the crypto market recovery, suggesting strong buying sentiment among the richest crypto investors.
Read more »
EUR/GBP Price Analysis: Rangebound as it consolidates within the 50 and the 100-DMA around 0.8410EUR/GBP Price Analysis: Rangebound as it consolidates within the 50 and the 100-DMA around 0.8410 By christianborjon EURGBP Crosses Technical Analysis
Read more »
220,000 BTC Bought by Bitcoin Whales Since December, Quickest Accumulation Since Late 2019: SantimentMega Bitcoin whales have added 220,000 $BTC since late December: santimentfeed
Read more »
EUR/JPY Price Analysis: Corrective downside could test 131.60EUR/JPY partially reverses the recent advance to fresh tops further north of the 133.00 barrier (February 10). Considering the recent price action, th
Read more »