EUR/GBP mixed and resumes bear trend

FXstreet.com (London) - EUR/GBP has printed a high of 0.8386 and currently up 0.05% vs a low of 0.8340, trading at 0.8356 at the time of writing.

EUR/GBP has met heavy supply on Sterling strength across the board . Research teams at TD Securities said, “Eurozone CPI slipped from 1.3% to 1.1% Y/Y in Sept, coming in below market expectations for 1.2%. So nothing here that would push the ECB away from its dovish stance on Wed”. Also, a risk to the Euro is “Berlusconi’s attempt to bring down the government by pulling his ministers out of the coalition prompted PM Letta to call for a confidence vote, which will take place on Wednesday. 23.7% in 2009”, explained Derek Halpenny at BTMU. For the UK, the teams explained, “ Mortgage approvals rose from 60.9K to 62.2K in Aug (mkt 61.5K), building on the 6m upward trend. The govt is expected to bring forward its Help to Buy Scheme, which should support housing activity further in the coming months/quarters”.

EUR/GBP Levels

The 20 DMA is 0.8420, the 50 DAM is 0.8531 and the 200 DMA is 0.8509. RSI (14) reads 41.96. Supports are ascending from 0.8266, 0.8286, 0.8304, 0.8326 and 0.8348. Spot is currently 0.8356 while resistances are 0.8429, 0.8449 and 0.8475.