EUR/GBP extends the consolidation in the sub-0.8700 area
|- EUR/GBP adds to the current range bound trade.
- Market sentiment remains tilted to the risk-on side.
- EMU Consumer Confidence is due next in the calendar.
Further improvement in the appetite for the risk complex lifts EUR/GBP to the boundaries of the 0.8700 hurdle so far on Monday.
EUR/GBP: Upside appears capped by the 200-day SMA
EUR/GBP moves to 2-day highs and jabs with the critical 0.8700 mark toward the start of the week, a region coincident with the 200-week SMA. Taking a look at the weekly chart, EUR/GBP begins the new trading week with gains after five sequential pullbacks.
Additionally, the cross contributes to the recent marginal advance while remaining well within the multi-session consolidative mood below the 200-day SMA, which is currently near 0.8740.
After it appears that a recession has been avoided on both sides of the Channel, the cross continues to closely monitor developments from the ECB and the BoE as well as the outlook for both economies.
Up until this point, the hawkish views from both central banks support the notion that extra tightening seems the most probable situation in the following month.
EUR/GBP key levels
The cross is gaining 0.08% at 0.8686 and faces the next resistance level at 0.8743 (200-day SMA) followed by 0.8834 (monthly high May 3) and then 0.8875 (monthly high April 25). On the other hand, the breakdown of 0.8661 (2023 low May 11) would expose 0.8547 (monthly low December 1 2022) and finally 0.8386 (weekly low August 17 2022).
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.