Share:
  • EURGBP heads for a strong weekly close.

  • Bull run faces another challenge at 0.8740.

 

EURGBP recorded a couple of bullish achievements this week, ascending above the resistance trendline, which halted September’s bull run, and crawling above the 200-day simple moving average (SMA) for the first time since May.

The price resumed its bullish momentum on Friday to unlock a six-month high of 0.8736, but the 50% Fibonacci retracement of the 0.8201-0.9249 upleg at 0.8725 might prove challenging as the RSI and the stochastic oscillator hint at strengthening overbought conditions. It’s also worth noting that the upward-sloping line drawn from the 2022 trough came to block the way higher earlier today.

If the recovery continues above 0.8740, it may pick up steam towards the 38.2% Fibonacci level of 0.8850. The 0.8875 barrier from April is within breathing distance and will be closely watched too. Should it prove easy to overcome, the pair could head for the 0.8930 bar.

In the event sellers take over, initial support might develop around the 20-day simple moving average (SMA) at 0.8660 and near the broken resistance trendline. A drop below that base would neutralize the short-term picture, likely motivating another negative correction towards the 50-day SMA at 0.8611. Additional losses from there could aggressively squeeze the price towards the 61.8% Fibonacci of 0.8535.

All in all, EURGBP is looking cautiously bullish in the short-term picture. A decisive close above 0.8740 could bolster buying appetite, whilst a pullback below 0.8660, and more importantly beneath 0.8600, could create fresh selling interest.

EURGBP

Share: Feed news

Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

EUR/USD grinds lower toward 1.0800 as USD extends recovery

EUR/USD grinds lower toward 1.0800 as USD extends recovery

EUR/USD is grinding lower toward 1.0800 in early European morning on Wednesday. The extended recovery in the US Dollar amid a deterioration in risk sentiment is weighing on the pair, as the focus shifts to a data-packed day ahead. 

EUR/USD News

GBP/USD sticks to lows near 1.2650 on sustained US Dollar strength

GBP/USD sticks to lows near 1.2650 on sustained US Dollar strength

GBP/USD is testing lows near 1.2650 in early Europe on Wednesday. The US Dollar is building its recovery gains amid a cautious mood, ignoring negative US Treasury bond yields. Traders refrain from risk-sensitive assets such as the Pound Sterling ahead of key US data, BoE and Fed speak. 

GBP/USD News

Gold buyers refuse to give up ahead of US macro data

Gold buyers refuse to give up ahead of US macro data

Gold price is duplicating the price action seen during Tuesday’s Asian trading, as bulls attempt another comeback early Wednesday. The USD is building on the previous recovery, despite a minor pullback in the US Treasury bond yields, as markets turn tentative ahead of a fresh batch of US GDP and PCE data due later in the day.

Gold News

Bitcoin price extends gains as capital inflows near all-time highs

Bitcoin price extends gains as capital inflows near all-time highs

Bitcoin (BTC) price remains northbound, a status that was invigorated by Monday reports on MicroStrategy and BlackRock. With growing optimism in the market, the risk appetite for investors is also proving elastic. 

Read more

Twiddling thumbs ahead of a US data barrage

Twiddling thumbs ahead of a US data barrage

Traders are keenly aware that the recent components of the Consumer Price Index (CPI) and Producer Price Index (PPI) have influenced the Personal Consumption Expenditures (PCE), and it is unlikely that they will receive an inflation print below the Federal Reserve's target rate.

Read more

Majors

Cryptocurrencies

Signatures