EUR/GBP meets strong supply; losing the 0.73 handle

FXStreet (Guatemala) - EUR/GBP has fallen back from recently made highs and has lost the 0.73 handle as the euro retreats on broad dollar demand.

EUR/GBP has been a mixed bag since yesterday's release of the Fed's decision to hold. The euro was firmly bid on the crosses but this pair ran into offers before the highs of the week at 0.7360 on two attempts through 0.7340 and has now reversed.

As the picture painted by the FOMC is digested, the pound has been performing well, albeit losing the 1.56 handle today on the rally in the dollar, but the upbeat outlook for the UK maybe a supporting factor that will keep a lid on the cross as markets project interest hikes from the BoE in the foreseeable future.

EUR/GBP a buy on dips?

Technically, Karen Jones, chief analyst at Commerzbank explained, "We look for dips lower to be contained by the uptrend at 0.7228 and while it holds, an upside bias will remain intact.

The market has recently failed at the top of a 6 month channel (0.7404) and will need to clear the .7421 recent high to retarget the 0.7482 May high ahead of the 0.7468 55 week ma. We suspect from a longer term point of view that the market will fail in this vicinity."