EUR/GBP bulls show resilience and trim daily losses

EUR/GBP shows mild losses at 0.8630, after bottoming at a low of 0.8600.
The daily chart delivers mixed signals with a bearish RSI and bullish MACD.
Recently, the four-hour chart indicators gained ground, and bulls are in command.

Patricio Martín FXStreet

On Tuesday, the EUR/GBP was sighted trading at 0.8630, enduring minor losses after bottoming at a daily low of 0.8600. The daily scene appears somewhat neutral to bearish, but there's compelling evidence of bulls gaining some footing. Notably, the four-hour indicators have amped up, implying momentum on the buyers' side.

The indicators on the daily chart suggest a subdued, bullish sentiment. Despite the Relative Strength Index (RSI) trending downwards in the negative zone, the Moving Average Convergence Divergence (MACD) shows rising green bars, suggesting an increasing buying momentum. Meanwhile, the pair's position in relation to its 20-day Simple Moving Average (SMA) adds to this bullishness as it maintains its position above this key level. However, the asset is still lagging behind the 100 and 200-day SMAs, indicating the bear's overall control is intact on the broader scale.

From a narrower perspective, the four-hour chart demonstrates that the bulls are steadily gaining ground. The Relative Strength Index (RSI) shows a positive slope within the bullish zone, while the Moving Average Convergence Divergence (MACD) also displays rising green bars, signaling a growing buying momentum. This mounting bullish force indicates an advancing trend in the short-term, despite the conflicting signals from the daily chart.

Support Levels: 0.8620 (20-day SMA), 0.8600, 0.8570.
Resistance Levels: 0.8640 (100-day SMA), 0.8660 (200-day SMA), 0.8700.

EUR/GBP daily chart

EUR/GBP

Overview
Today last price	0.8626
Today Daily Change	-0.0008
Today Daily Change %	-0.09
Today daily open	0.8634

Trends
Daily SMA20	0.8622
Daily SMA50	0.8669
Daily SMA100	0.8638
Daily SMA200	0.8662

Levels
Previous Daily High	0.8646
Previous Daily Low	0.8592
Previous Weekly High	0.8634
Previous Weekly Low	0.8549
Previous Monthly High	0.8766
Previous Monthly Low	0.8614
Daily Fibonacci 38.2%	0.8626
Daily Fibonacci 61.8%	0.8613
Daily Pivot Point S1	0.8602
Daily Pivot Point S2	0.857
Daily Pivot Point S3	0.8548
Daily Pivot Point R1	0.8656
Daily Pivot Point R2	0.8679
Daily Pivot Point R3	0.8711

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

GBP/USD holds range below 1.3650 amid Iran risks

GBP/USD extends its sideways consolidative price move for the second straight day and trades below 1.3650 in Tuesday's European session. The US Dollar is looking to build on its modest recovery amid US sanctions on Iran, acting as a headwind for the pair. The lack of follow-through selling warrants some caution for bearish traders.

EUR/USD struggles near 1.1650 as USD recovers amid Mideast woes

EUR/USD is struggling to gain traction, while trading near 1.1650 in European trading on Tuesday. The pair fails to find support amid a modest US Dollar recovery as rising oil prices, elevated bond yields, and escalating Middle East tensions fuel risk-off trades. Upbeat Germany IFO Survey fails to inspire Euro bulls.

Gold remains depressed below $4,650 on firmer USD, Fed risks, and Middle East tensions

Gold remains on the back foot below $4,650 through the first half of the European session. However, the lack of follow-through selling warrants caution before positioning for an extension of the intraday retracement slide from the $4,700 neighborhood, or the highest level since May 14, touched earlier this Tuesday. The US Dollar is seen building on its recovery from a three-month low as inflation risks stemming from volatile energy prices keep bets for at least one interest rate hike by the US Federal Reserve on the table.

Bitcoin tops $80,000 as US Treasury fights high yields – AERO, VIRTUAL rally

Bitcoin extends gains above $80,000 as broader market risk-on sentiment persists. The scarce asset could extend its rally as the US Treasury combats high yields in the long-dated bond market, with further interventions on the horizon. Aerodrome Finance (AERO) and Virtuals Protocol (VIRTUAL) emerged as top performers over the last 24 hours.

The forex market is switching to a ‘debasement trade’

The US dollar has stabilised near three-month lows thanks to a rapid recovery in Treasury bond yields. Yields on 30-year bonds are returning to the levels seen following the Treasury’s announcement that it was increasing the minimum purchase volume to $4 billion. The greenback got support from falling stock indices, the continued rally in Brent crude, and positive signals from the US economy.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.