- EUR/GBP gained traction for the second straight session and move further away from the 0.9000 mark.
- The technical set-up supports prospects for a bullish breakout through a descending trend-channel.
- Any meaningful dip below the 0.9070 support might be seen as a buying opportunity near 100-DMA.
The EUR/GBP cross gained traction for the second consecutive session and recovered further from the key 0.9000 psychological mark, or five-week lows touched on Wednesday. The positive momentum lifted the cross back towards the top boundary of a one-month-old descending trend-channel.
Given that the EUR/GBP cross has been showing some resilience below 100-day SMA, a convincing breakthrough will be seen as a fresh trigger for bullish traders and set the stage for additional gains. The cross might then accelerate the move back towards reclaiming the 0.9200 mark.
Meanwhile, oscillators on the daily chart have just started moving into the positive territory and support prospects for a bullish breakthrough the trend-channel. Hence, a subsequent move to the recent daily closing highs, around the 0.9255-60 region, now looks a distinct possibility.
On the flip side, any meaningful slide below the 0.9070 region might continue to attract some dip-buying near the 100-day SMA and remain limited. That said, sustained weakness below the 0.9000 mark will negate any near-term bullish bias and pave the way for further weakness.
The downward momentum might then drag the EUR/GBP cross further towards the trend-channel support, which is currently pegged near mid-0.8900s. Some follow-through selling will set the stage for an extension of the recent pullback from the vicinity of the 0.9300 round-figure mark.
EUR/GBP daily chart
Technical levels to watch
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
Editors’ Picks
EUR/USD steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.