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EURGBP breaks over 9200 and key resistance

Market Analysis

EURGBP, H1                   

Two data points this morning have helped EURGBP back over the key 200 period moving average and the psychological 0.9200 level.  Eurozone Sentix investor survey improved slightly in September – to 28.2, with the institute seeing the Eurozone in a boom phase. The dip in the German reading for August was corrected partly in September, but the institute said the Sentix survey did not share the same optimism as the respondents of the Ifo survey. That ties in with the dip in ZEW investor confidence, which also suggested diverging views between financial markets and actors in the real economy. For the U.S. the survey suggests a cooling economy. So the improving Eurozone continues, but at a slightly weaker pace.  Across the English Channel, UK Construction PMI’s fell to 51.1 from 51.9 last time and significantly below expectations of 52.1. The reading was a 12 month low as uncertainty over Brexit continues to slow investment.

EUGBP H1 is approaching overbought as RSI reaches 70, and the H4 has resistance at 0.9225. However, the 8 day low close on Friday at 0.9154 was supported by the key 20 day moving average.

 

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Stuart Cowell

Senior Market Analyst

HotForex

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