EUR/GBP: a sell on rallies, stalling at 0.8750?

Ross J Burland FXStreet

Currently, EUR/GBP is trading at 0.8741, up 0.91% on the day, having posted a daily high at 0.8751 and low at 0.8655.

EUR/GBP took off with the Brexit fears theme kicking in again as PM May proposes to make a speech related to Brexit next week, sparking concerns as to how hard the Brexit will be driving an exodus out of the UK market on Thursday.

"We continue to await the Supreme Court ruling on the Brexit case, which could be issued any day now, explained analysts at Societe Generale, adding, "There is growing speculation that the court will affirm the need to obtain parliamentary approval before triggering Article 50. We recommend fading EUR/GBP rallies using options as we expect the euro to come under renewed pressure as European political risk flares up again in coming weeks."

EUR/GBP levels

Current price is 0.8745, with resistance ahead at 0.8751 (Daily High), 0.8757 (Daily Classic R3), 0.8771 (Weekly Classic R3), 0.9118 (Annual High) and 0.9118 (3 Year High). Next support to the downside can be found at 0.8731 (Daily Classic R2), 0.8706 (Yesterday's High), 0.8699 (Daily Classic R1), 0.8697 (Hourly 20 EMA) and 0.8691 (YTD High).

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 0.8675

75% Bullish
25% Bearish
0% Sideways

Bias Bullish

1 Month

Avg Forecast 0.8685

73% Bullish
27% Bearish
0% Sideways

Bias Bullish

1 Quarter

Avg Forecast 0.8732

64% Bullish
27% Bearish
9% Sideways

Bias Bullish

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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