EUR/GBP outlook: Looks for fresh direction signal

Slobodan Drvenica Windsor Brokers

EUR/GBP

EURGBP dips in early Thursday’s trading, after a double upside failure at falling 100DMA (0.8572), the lower boundary of strong resistances at 0.8580 zone (including Fibo 38.2% of 0.8714/0.8498 downtrend and a multiple spike highs).

Sterling regained ground after being deflated by UK CPI data and dovish steer from BoE chief Bailey on Wednesday, though more evidence about near-term direction is still needed, as daily studies are mixed.

Solid support lays at 0.8550 (converged 5/55DMA’s, on track to form a bull-cross) with ability to hold above here to keep near-term bias with bulls for fresh attempt through 0.8580 pivots, which would open way for extension towards next key barriers at 0.8600 zone (50% retracement / 200DMA).

Conversely, loss of 0.8550 handle would weaken near-term structure and risk renewed attacks at key 0.8520/00 support zone.

Res: 0.8572; 0.8604; 0.8620.
Sup: 0.8550; 0.8520; 0.8499.

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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