EUR/GBP climbs to two-week tops, looks to build on momentum beyond 0.8600


  • A weaker sterling assisted EUR/GBP to regain positive traction on Wednesday.
  • The upside seems limited ahead of the BoE meeting and German election this week.
  • Strength beyond monthly tops should pave the way for a move to the 0.8670 area.

The EUR/GBP cross climbed to fresh two-week tops during the early European session, with bulls now awaiting a sustained move beyond the 0.8600 round-figure mark.

The cross regained traction on Wednesday and is now looking to build on its recent bounce from the key 0.8500 psychological mark, or near one-month lows touched last week. The British pound's relative underperformance lacked any obvious fundamental catalyst and could be solely attributed to some repositioning trade ahead of the FOMC policy decision.

On the other hand, a subdued US dollar price action acted as a tailwind for the shared currency, which, in turn, extended some support to the EUR/GBP cross. That said, the upside seems limited as investors might refrain from placing aggressive bets heading into this week's key event risk – the BoE meeting on Thursday and the German federal election on Sunday.

Hence, any subsequent positive move is more likely to confront stiff resistance and remain capped near the monthly swing highs, around the 0.8615 region. This, in turn, warrants some caution for aggressive bullish traders and positioning for any further gains amid absent relevant market-moving economic releases, either from the Eurozone or the UK.

From a technical perspective, some follow-through buying beyond the mentioned barrier will set the stage for additional gains. The EUR/GBP cross might then accelerate the momentum and climb further towards challenging the 0.8670 supply zone before eventually aiming to reclaim the 0.8700 round-figure mark.

Technical levels to watch

EUR/GBP

Overview
Today last price 0.8601
Today Daily Change 0.0018
Today Daily Change % 0.21
Today daily open 0.8583
 
Trends
Daily SMA20 0.8566
Daily SMA50 0.8548
Daily SMA100 0.8572
Daily SMA200 0.8665
 
Levels
Previous Daily High 0.8595
Previous Daily Low 0.8563
Previous Weekly High 0.8563
Previous Weekly Low 0.8501
Previous Monthly High 0.8599
Previous Monthly Low 0.845
Daily Fibonacci 38.2% 0.8575
Daily Fibonacci 61.8% 0.8583
Daily Pivot Point S1 0.8566
Daily Pivot Point S2 0.8549
Daily Pivot Point S3 0.8534
Daily Pivot Point R1 0.8597
Daily Pivot Point R2 0.8612
Daily Pivot Point R3 0.8629

 

 

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