The cross dips below 0.90 handle (reinforced by rising 10DMA) as pound was inflated by strong UK retail sales data and the single currency got hurt by renewed political turmoil in Italy.

Bulls also showed signs of stall on Wednesday’s Doji candle, with today’s fresh weakness being on track to complete reversal pattern on daily chart.

Weaker momentum and south-turning stochastic and RSI support scenario, which would require close below 0.90 level as initial negative signal.

Extension below 20DMA (0.8971) and 30DMA (0.8948) is needed to confirm reversal and shift focus lower.

Conversely, holding above 0.90 handle would keep bullish bias intact, with narrow consolidation seen preceding fresh attempts higher.

Res: 0.9009; 0.9038; 0.9050; 0.9087
Sup: 0.8971; 0.8948; 0.8920; 0.8872

EURGBP

The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD surges above 1.1100 as Trump announces steps against China

EUR/USD is trading above 1.1100, up on the day. President Trump said he orders companies to search Chinese imports for drugs. Earlier he criticized Powell's lack of action. 

EUR/USD News

GBP/USD jumps above 1.2250 on USD weakness

GBP/USD is trading close to the monthly highs above 1.2250 as the US dollar falls following Powell's hint of cutting rates and Trump's angry response. 

GBP/USD News

USD/JPY plummets to ten-day lows below 106 as Trump goes berserk on Twitter

The USD/JPY came under strong selling pressure in the last hour and erased nearly 100 pips as US President Donald Trump's latest rant on Twitter forced investors to seek refuge and ramped up the demand for safe-haven JPY. 

USD/JPY News

Powell powerless against Trump's trade wars – US braces for recession, USD set to move

"The most powerful central banker in the world" – is how we and others characterize Fed Chair Jerome Powell. While that may be true – monetary policy is reaching its limits – especially in the face of a trade war.

Read more

Gold gains more than $30, eyes 2019 highs on Trump’s tweet

Gold continues to rise sharply amid concerns about the impact of the escalation in the US-China trade war. The demand for safe-haven assets emerged over the last hours, leading to a rally in the yellow metal. 

Gold News

Majors

Cryptocurrencies

Signatures