EUR/USD side-lined, EUR/GBP down and GBP/USD up on sterling strength
A stronger British pound due to anticipated further BoE interest rate hikes pushes EUR/GBP lower and GBP/USD higher while EUR/USD remains mixed in low volatility trading.
EUR/USD side-lined ahead of next week’s Russia-US meeting
Volatility has been decreasing in the EUR/USD cross over the past couple of days as traders are getting used to the Russia-Ukraine stalemate.
Yesterday EUR/USD bounced off the 55-day simple moving average (SMA) and one-month support line at $1.1338 to $1.1323 and today it is so far trading within a tiny 30 tick range. Minor resistance continues to be seen between late November, December, and this week’s highs at $1.1382 to $1.1396. It will need to be exceeded for the January and current February highs at $1.1482 to $1.1495 to be back in the picture.
Only slide-through support at $1.1323 could lead to this week’s low at $1.1281 and the early January low at $1.1272 being retested.
The gradual EUR/GBP slide continues
EUR/GBP continues to give back its early February swift gains on the back of recent sterling strength, benefitting from a Covid-19 post-Omicron growth rebound and expectations for further Bank of England (BoE) interest rate hikes.
Were Thursday’s low at £0.8334 to give way, the mid-January trough at £0.8324 would be targeted. Major support remains to be seen between the January and early February lows at £0.8305 to £0.8286.
Minor resistance above the £0.8381 November low and this week’s high at £0.8402 can be found along the 55-day SMA at £0.8409.
GBP/USD trades near four-week highs
GBP/USD’s strong bounce off the $1.3513 to $1.349 mid-November high, 6 January and 7 February lows, as the pound sterling strengthened amid expectations for further BoE interest rate hikes, has taken it to a one-month high close to last week’s high at $1.3644.
Next up are the 200-day SMA at $1.369 and the January peak at $1.3749.
Only a currently unexpected fall through this week’s $1.3487 low, would push the $1.3455 to $1.3431 support zone back to the fore. It is comprised of the early as well as the 25 and 26 January lows and the 55-day SMA. Further down lies the January trough at $1.3359.
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