Technical Analysis – EURGBP consolidation eyes upside to 0.87

XM Investment Research XM

The euro/pound exchange rate has recently rallied as sterling has been weak due to renewed concerns about the impact of Brexit. The pair made a local high of 0.8630 on Tuesday, leading to overbought conditions (RSI climbed above 70) and a subsequent correction and consolidation.

The overall trend has remained bullish as price action is comfortably above the 50-period moving average. The pair traded as low as 0.8560 and this is a very short-term support which has been tested a couple of times in the past 24 hours.

On the upside, the pair could eye 0.8724 (made on August 16), which interestingly is also the post-Brexit high for the euro. This is also the highest since July 2013 and it could present a formidable obstacle for euro bulls to take out.

The RSI currently around 56 indicates on balance bullish action, but not overbought.

Author

XM Investment Research

Manned by a powerful team of professionals, along with certified forex instructors, the XM Research and Education Center provides a full range of up-to-date marketing tools essential for profitable trading, including market analys

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.