• 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

 

 

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