EUR/GBP Closes Tweezers Top - Traders Brace for Selling!
|The single currency Euro gained bullish momentum in the wake of a series of positive economic figures. The services PMI figures from France, German, and Italy are supporting the shared currency Euro.
The Eurozone's Retail Sales data increased by 0.1% in the euro area (EA19) and by 0.2% in the EU28, which is just in line with analysts' forecast. On the other hand, Sterling surged in early October as traders raised expectations that a Brexit agreement would move through Parliament, whereby abolishing Brexit risk from the outlook.
Lately, the EUR/GBP dropped ground despite a stable employment release in Spain. Unemployment change declined by 97.9 thousand; it's the best report since 2012. While the British PMI rose out of the negative area, growing to 50.0. Consequently, the EUR/GBP started gaining bearish momentum.
Technically, the EUR/GBP traded in an oversold zone, but the reversed soon to drive bullish trend above 0.8585 level. The formation of Tweezers Top on the 2-hour chart is suggesting the chance of a bearish reversal.
Support |
Pivot Point |
Resistance |
0.8572 |
0.8609 |
0.8633 |
0.8548 |
0.8669 |
|
0.8488 |
0.873 |
The EUR/GBP is now testing the 38.2% Fibonacci retracement level at 0.8610, and the bullish breakout of this level can extend buying until 61.8% Fibonacci retracement level of 0.8625.
EUR/GBP - Trade Setup
Sell Below 0.8625
Take Profit 0.8585
Stop Loss 0.8645
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.