24 Jul 2015
EUR/GBP: downtrend could resume below 0.7045 – TDS
FXStreet (Edinburgh) - Strategists at TD Securities see the cross resuming its downtrend if 0.7045 is breached.
Key Quotes
“The theme of weaker PMI data extended to the Eurozone, after the German and French data softened unexpectedly for the manufacturing and services sectors in both countries”.
“EURGBP is softer this morning as a result, but the size and duration of the rebound seen over the last several days has been greater than we had initially expected”.
“We continue to strongly favour a turn lower and extension to below 0.68, but acknowledge this recovery rally may have longer legs”.
“A move above 0.7140 will have us reassess this expectation more thoroughly, while a dip below 0.7045 increases our confidence that the down-trend has resumed”.
Key Quotes
“The theme of weaker PMI data extended to the Eurozone, after the German and French data softened unexpectedly for the manufacturing and services sectors in both countries”.
“EURGBP is softer this morning as a result, but the size and duration of the rebound seen over the last several days has been greater than we had initially expected”.
“We continue to strongly favour a turn lower and extension to below 0.68, but acknowledge this recovery rally may have longer legs”.
“A move above 0.7140 will have us reassess this expectation more thoroughly, while a dip below 0.7045 increases our confidence that the down-trend has resumed”.