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12 Sep 2013
EUR/GBP falls to critical 0.8400 support
FXstreet.com (Lisbon) - The EUR/GBP technical cross took an unwelcome turn down to the 0.8400 region on the heels of EMU data Thursday.
In the EMU, Industrial Production w.d.a. (YoY) was reported at -2.1% in July, missing expectations of -0.1%. Moreover, Industrial Production s.a. (MoM) yielded a figure of -1.5% in July, also underperforming projections that called for +0.1%.
The recent fall has taken the pair to fresh lows in the area of 0.8401 Thursday during European trading, which appears to be the source of strong support thus far. Indeed, the EUR/GBP remains fortified by heavy support at 0.8399, ahead of 0.8383, and 0.8364, notes the Danske Research team.
EUR/GBP strategic bias
According to the Technical Analyst Team at ICN.com, “The EUR/GBP was rejected earlier from the 0.8400 pivotal support, and neckline for the potential major double top pattern. The pair settles above this key neckline but below the 200-days SMA and the main broken ascending support, and that favors the bearish scenario, though a break below 0.8400 is necessary to confirm the extension of the bearish wave.
In the EMU, Industrial Production w.d.a. (YoY) was reported at -2.1% in July, missing expectations of -0.1%. Moreover, Industrial Production s.a. (MoM) yielded a figure of -1.5% in July, also underperforming projections that called for +0.1%.
The recent fall has taken the pair to fresh lows in the area of 0.8401 Thursday during European trading, which appears to be the source of strong support thus far. Indeed, the EUR/GBP remains fortified by heavy support at 0.8399, ahead of 0.8383, and 0.8364, notes the Danske Research team.
EUR/GBP strategic bias
According to the Technical Analyst Team at ICN.com, “The EUR/GBP was rejected earlier from the 0.8400 pivotal support, and neckline for the potential major double top pattern. The pair settles above this key neckline but below the 200-days SMA and the main broken ascending support, and that favors the bearish scenario, though a break below 0.8400 is necessary to confirm the extension of the bearish wave.