EUR/GBP testing 0.7200

FXStreet (Edinburgh) - After climbing as high as the boundaries of 0.7220, EUR/GBP is now deflating to the vicinity of the key mark at 0.7200.

EUR/GBP boosted by euro

The solid performance of the single currency at the beginning of the week is giving the cross a renewed upside bias, managing to regain the 0.7200 handle and challenging at the same time 2-week tops near 0.7220.

Mixed data from the ZEW Survey in Germany and the euro area plus in-line consumer prices in the euro bloc for the month of February were innocuous, while the BoE minutes and UK’s labour market figures tomorrow will be of bigger significance.

EUR/GBP levels to consider

At the moment the cross is up 0.99% at 0.7197 with the next up barrier at 0.7220 (high Mar.9) followed by 0.7238 (high Mar.6) and finally 0.7261 (21-d MA). On the downside, a drop beyond 0.7120 (low Mar.17) would expose 0.7093 (low Mar.16) and then 0.7036 (low Mar.12).

What if the Fed disappoints? – MP

With markets trading cautiously ahead of Fed meet, Dean Popplewell, Director of Currency Analysis at MarketPulse, notes that if Fed maintains ‘patient’, the dollar index might fall back to 92.
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Remain long USD/JPY – GrowthAces

The GrowthAces Research Team remains long on USD/JPY, explaining that both macros and technicals support an upside climb for the pair, targeting 123.55 levels.
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