16th June: Last week EURGBP closed below 0.8000 for the first time since September 2012

20140615 eurgbp weekly blog

I’ve been writing all year about the EURGBP and its constant decline whilst making new lows. Well at the end of this week we had a further point of interest as the currency closed below the psychological number 0.800 for the first time since September 2012.

Most of this was due to comments by BoE Governor Carney as he pointed to UK interest rates rising faster than expected – this was enough to re-ignite an already strong Sterling trend this year and accelerate it to new highs in GBPCHF, new lows in EURGBP and sent GBPUSD back to tickling the soft-underbelly of the 1.70 handle.

20140615 eurgbp daily blog

The daily chart shows how the decline accelerated over the last few days. The hint of a rise in UK rates was enough to power GBP through levels of support and resistance.  We saw the support zone around 0.8030 was sliced through and now we look at 0.7960 zone as the next level. After that I’m looking at the lows of July 2012 around 0.7760 as the next major support level.  At the moment, and based on the present sentiment, there’s every chance that it may head to those levels. We shall as always wait and trade what we see.

Trade well

 

Paul

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About FXTraderPaul

A professional Trader and Coach, FXTraderPaul blogs about his adventures from the front-lines of FX Trading. A Trader and educator who can walk the walk as opposed to merely talk the talk!

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  1. 16th June: An interesting day for the UK | FXTraderPauls Trading Adventures - June 17, 2014

    […] posted earlier on Monday about how the EURGBP had closed below 0.8000 on a weekly basis and how 0.7960 was the next…. As you can see from the chart today’s price dropped to that level (not a massive move by […]

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