Technical Analysis – EURGBP consolidation eyes upside to 0.87
|The euro/pound exchange rate has recently rallied as sterling has been weak due to renewed concerns about the impact of Brexit. The pair made a local high of 0.8630 on Tuesday, leading to overbought conditions (RSI climbed above 70) and a subsequent correction and consolidation.
The overall trend has remained bullish as price action is comfortably above the 50-period moving average. The pair traded as low as 0.8560 and this is a very short-term support which has been tested a couple of times in the past 24 hours.
On the upside, the pair could eye 0.8724 (made on August 16), which interestingly is also the post-Brexit high for the euro. This is also the highest since July 2013 and it could present a formidable obstacle for euro bulls to take out.
The RSI currently around 56 indicates on balance bullish action, but not overbought.
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