EUR/GBP Price Analysis: Ascensds above 0.8550 on risk-on, as it pierces the 50-DMA
- EUR/GBP trades at 0.8585, testing the 50-day Moving Average at 0.8583, with a daily close above potentially targeting the 0.8600 level.
- Hourly chart shows an upward bias as the pair forms a series of higher lows and higher highs, setting the stage for further gains.
- A breach below the 50-hour SMA at 0.8579 could trigger a pullback, with potential downside targets including Monday’s low of 0.8566 and last Friday’s low of 0.8560.
EUR/GBP climbed late in the New York session to gains above 0.8550, courtesy of a risk-on impulse and technical indicator, suggesting further upside is expected amid the lack of economic data on the UK calendar. The pair is trading at 0.8585, gains 0.11%.
EUR/GBP Price Analysis: Technical outlook
The cross-currency daily chart portrays the pair as neutral to downward biased, as the pair resumed upwards and is testing the 50-day Moving Average (DMA) at 0.8583. A daily close above the latter would expose the 0.8600 figure, followed by the August 14 high of 0.8632. Otherwise, if EUR/GBP stays below 0.8600, that could open the door for further weakness, and it might test the year-to-date (YTD) low of 0.8492.
The EUR/GBP hourly chart depicts the pair as upward biased, with the pair achieving successive series of higher lows and higher highs, which could pave the way for further upside. If EUR/GBP breaks above 0.8600, that could open the door for further gains, with the August 14 high at 0.8632 and the August 11 high at 0.8669. Conversely, if sellers break the 50-hour Simple Moving Average (SMA) ah 0.8579, a pullback is expected towards Monday’s low of 0.8566. A breach of the latter would expose last Friday’s low of 0.8560.
EUR/GBP Price Action – Hourly chart
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
