• The EUR/GBP seesawed in a volatile 100-pip trading session on Friday.
  • Weak data from the UK and the EU left traders undecided on which direction to take.
  • The EUR/GBP daily chart depicts the pair as upward biased, but the 4-hour illustrates the cross might correct towards 0.8550 before resuming the uptrend.

The EUR/GBP advances during the day, though retraced from near two-week highs around 0.8678 on Friday, amidst an upbeat market mood that triggered support for risk-sensitive currencies in the FX space, the British pound one of them. At 0.8621, the EUR/GBP is trading in the green by just 0.19%.

A volatile session characterized EUR/GBP Friday’s price action. Weaker than expected, UK’s factory data lifted the cross-currency. Nevertheless, it began to pare its losses of late after hot Eurozone inflation, alongside languish factory output, was reported, painting a gloomy scenario for the EU.

EUR/GBP Daily chart

The EUR/GBP daily chart depicts the pair as neutral-upward biased. Traders should note how the Relative Strength Index (RSI) stayed steady between 50 and 70 since May, while the EUR/GBP rallied from 0.8250 to the YTD high above 0.8700. Therefore, the EUR/GBP might extend its rally in the near term and even challenge the YTD high above 0.8700, but a break above 0.8678 is needed. On the other hand, if EUR/GBP sellers plunge prices below 0.8550, that could pave the way to the 200-day EMA at 0.8442.

EUR/GBP 4-Hour chart

In the near term, the EUR/GBP 4-hour chart depicts the pair trading inside an ascending channel that has kept the cross-currency pair trading within a 100-pip range. On Friday, the cross reached the top of the range and reversed, piercing the R2 and R1 daily pivots, each at 0.8662 and 0.8633, before settling around the 20-EMA at 0.8622. Also, the Relative Strength Index (RSI) at 50.72 accelerates its fall towards the mid-line, and a cross below would pave the way for further downside in the EUR/GBP pair.

Therefore, the EUR/GBP’s first support would be the 50-EMA at 0.8609. Break below would expose the 100-EMA at 0.8592, followed by the June 30 swing low at 0.8551.

EUR/GBP Key Technical Levels

 

Overview
Today last price 0.8619
Today Daily Change 0.0010
Today Daily Change % 0.12
Today daily open 0.861
 
Trends
Daily SMA20 0.8581
Daily SMA50 0.8524
Daily SMA100 0.8438
Daily SMA200 0.8446
 
Levels
Previous Daily High 0.862
Previous Daily Low 0.8551
Previous Weekly High 0.8641
Previous Weekly Low 0.8562
Previous Monthly High 0.8721
Previous Monthly Low 0.8486
Daily Fibonacci 38.2% 0.8577
Daily Fibonacci 61.8% 0.8594
Daily Pivot Point S1 0.8568
Daily Pivot Point S2 0.8525
Daily Pivot Point S3 0.8499
Daily Pivot Point R1 0.8637
Daily Pivot Point R2 0.8663
Daily Pivot Point R3 0.8706

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD falls toward 0.9600 amid renewed dollar strength

EUR/USD falls toward 0.9600 amid renewed dollar strength

EUR/USD has turned south and declined toward 0.9600 in the second half of the day on Monday. A sharp decline witnessed in the GBP/USD pair and the souring market mood provided a boost to the dollar, lifting the US Dollar Index back above 114.00. 

EUR/USD News

GBP/USD falls below 1.0700 following BoE statement

GBP/USD falls below 1.0700 following BoE statement

GBP/USD came under renewed bearish pressure and slumped below 1.0700 during the American trading hours. In a statement published on Monday, the Bank of England said that they welcome the government's commitment to sustainable economic growth, triggering another GBP selloff.

GBP/USD News

Gold could soon challenge the $1,600 level

Gold could soon challenge the $1,600 level

Demand for the dollar continued at the beginning of the week, resulting in XAUUSD plummeting to $1,626.67, its lowest since April 2020. Concerns about potential recessions undermined the dismal market’s mood, pushing the greenback higher despite its extreme overbought conditions.

Gold News

Bitcoin: Investors need to prepare for volatile breakout

Bitcoin: Investors need to prepare for volatile breakout

Bitcoin price has been devoid of volatility for the last week and has been in a tight consolidation without directional bias whatsoever. This range bound move has formed a triangle pattern which could break either way. 

Read more

Three stocks that will be in the news this week: Amazon, Nike, Micron Technology

Three stocks that will be in the news this week: Amazon, Nike, Micron Technology

The S&P 500 index lost 4.1% last week and left traders melancholy with another week to go in this dreadful September. The S&P 500 index is down 6.6% so far in the month that is already known for poor performance, and most seem to think the pain will continue. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures