• Euro extends gains versus the pound during the American session.
  • EUR/GBP heads for weekly gains after a sharp bounce.

The EUR/GBP extended the rally and climbed to 0.8717, hitting the highest level since April 16. The euro holds around the top with the positive tone intact.

On Monday, EUR/GBP traded under 0.8600 before starting a recovery that gained speed during Thursday and Friday. Not even risk appetite weakened the move higher. Economic data from the UK and the Eurozone came in above expectations on Friday. The positive tone around the euro continues to drive EUR/GBP higher.

EUR/GBP back above 0.8700

If the euro manages to hold above 0.8700, it could set up the scenario for an extension of the rally from the 0.8470 bottom. The next resistance is seen around 0.8730. A pullback under 0.8700 would alleviate the bullish pressure, and under 0.8600, the pound would be ready for a new leg higher.

Analyst at Credit Suisse points out that if the EUR/GBP holds above 0.8721/32 it would see a potential ‘head & shoulders’ base established “to mark a more important turn higher with resistance then seen initially at the 38.2% retracement of the fall from December at 0.8761 ahead of 0.8793/99 and then more importantly at the ‘neckline’ to the medium-term top at 0.8851/61.”

Technical levels

EUR/GBP

Overview
Today last price 0.8712
Today Daily Change 0.0029
Today Daily Change % 0.33
Today daily open 0.8683
 
Trends
Daily SMA20 0.8611
Daily SMA50 0.8618
Daily SMA100 0.8785
Daily SMA200 0.8911
 
Levels
Previous Daily High 0.8702
Previous Daily Low 0.8635
Previous Weekly High 0.8719
Previous Weekly Low 0.864
Previous Monthly High 0.8674
Previous Monthly Low 0.8503
Daily Fibonacci 38.2% 0.8676
Daily Fibonacci 61.8% 0.8661
Daily Pivot Point S1 0.8645
Daily Pivot Point S2 0.8606
Daily Pivot Point S3 0.8577
Daily Pivot Point R1 0.8712
Daily Pivot Point R2 0.8741
Daily Pivot Point R3 0.878

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD retreats towards 0.6900 amid cautious markets

AUD/USD retreats towards 0.6900 amid cautious markets

AUD/USD is easing towards 0.6900, fading a renewed uptick amid a cautious market mood. The US dollar is attempting a bounce, as investors rethink the impact of aggressive Fed rate hikes on growth. A dip in the Australian business confidence survey also weighs on the AUD. 

AUD/USD News

USD/JPY drops towards 135.00 amid risk-aversion

USD/JPY drops towards 135.00 amid risk-aversion

USD/JPY is heading south to test 135.00, having failed to sustain above 135.50. The pair is falling in tandem with the US Treasury yields while the return of risk-off flows underpins the USD bounce. Focus shifts to US data. 

USD/JPY News

Gold bounces off $1,820 support zone, focus on US data, Fed’s Powell

Gold bounces off $1,820 support zone, focus on US data, Fed’s Powell

Gold Price consolidates recent losses at around $1,825.00 during Tuesday’s Asian session. In doing so, the yellow metal takes clues from the market’s cautious optimism ahead of the key US consumer sentiment numbers and the much-awaited central bankers’ debate at the ECB forum.

Gold News

ApeCoin price edges near a critical level, is the uptrend genuine?

ApeCoin price edges near a critical level, is the uptrend genuine?

ApeCoin price shows compression of two Simple Moving Averages as price consolidates. APE price shows bullish re-entrance on the Volume Profile pattern, but traders should steer away from being early buyers. Invalidation of the bear trend remains at $6.15.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures