EUR/GBP moves higher as GBP struggles on Wednesday
- EUR/GBP trades 0.30% higher in the battle of the weakest against the dollar.
- Both EUR and GBP have struggled against the greenback on Wednesday but EUR faired slightly better.
EUR/GBP daily chart
In the battle of the weakest on Wednesday, the EUR comes out on top as EUR/GBP trades 0.30% higher on the session. The cross has now cemented itself above 0.90 and 0.9054 the previous wave high is also broken.
Looking at the technicals, there is a channel on the chart and if the price moves toward the channel top it could find itself near the 0.9150 figure. Both the main indicators at the bottom of the chart are bullish. The Relative Strength Index is above 50 and nearing the overbought zone but there is still space to the upside. The MACD histogram is still in the green and the signal lines are firmly above the mid zone.
As GBP is more sensitive to the sell-off in stocks if the bearishness continues the pair could continue on its upward trajectory. On the hourly chart (not in the article), the 0.9080 area looks slightly sticky to the upside and if the bulls manage to break that level it will be game on to the upside.
Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
