EUR/GBP: consolidates at triangle's resistance, supported on positive EUR/USD flows
|- EUR/GBP was offered on sterling flows where support was coming in on M&A news.
- Traders looked out for the UK government publishing the Brexit white paper policy document which is pivotal for the Brexit negotiations.
- The 200 and 21-D SMAs guard 0.8720 triangle lows and the double bottom lows at 0.8697.
- The 0.9034 October 2017 high on the wide is a key upside target.
EUR/GBP shade sofer in a 0.8820/50 range, while both pairs have been busy since the Tokyo fix, slammed in European trade from 0.8843 down to the aforementioned lows before being picked up in early North American trade, up to the 21-hr SMA at 0.8838.
EUR/GBP was offered on sterling flows where support was coming in on M&A news while Comcast battle it out for Sky. GBP/USD rallied from 1.3180 to 1.3244 while traders looked out for the UK government publishing the Brexit white paper policy document which is pivotal for the Brexit negotiations. (The truth is we are no closer today to a workable Brexit plan than we were before Chequers).
EUR/USD flows, (US CPI miss), takes EUR/GBP to a more respectable level on the 0.88
As for the euro, it collapsed yesterday below the daily cloud base which is now at 1.1717 en route to the 1.1649 Fibonacci level that was scored in the London where traders came in on the US CPI disappointment. EUR/USD rallied back to the 200-hourly SMA 1.1695 which helped lift the cross back to a more respectable level on the 0.88 handle meeting the 21-hr SMA.
EUR/GBP technical analyses
The price is consolidated around the triangle's resistance. The 200 and 21-D SMAs guard 0.8720 triangle lows and the double bottom lows at 0.8697. 0.8620 opens a run to 0.8526 as being the 78.6% retracement of the move from 2017 on the wide. The 0.9034 October 2017 high on the wide is a key upside target on a break of this consolidative phase through the top of the bearish triangle formation's resistance.
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