EUR/GBP jumps back above 0.8700, tests April highs


  • 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

 

 

Share: Feed news

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.

Recommended content


Recommended content

Editors’ Picks

EUR/USD clings to daily gains above 1.0650

EUR/USD clings to daily gains above 1.0650

EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.

EUR/USD News

GBP/USD recovers toward 1.2450 after UK Retail Sales data

GBP/USD recovers toward 1.2450 after UK Retail Sales data

GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.

GBP/USD News

Gold holds steady at around $2,380 following earlier spike

Gold holds steady at around $2,380 following earlier spike

Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.

Gold News

Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium

Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in

Bitcoin price shows no signs of directional bias while it holds above  $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research. 

Read more

Week ahead – US GDP and BoJ decision on top of next week’s agenda

Week ahead – US GDP and BoJ decision on top of next week’s agenda

US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.

Read more

Forex MAJORS

Cryptocurrencies

Signatures