EUR/GBP Price Analysis: Buyers again aim for 100-DMA breakout
- EUR/GBP extends the previous day’s recovery moves, refreshes intraday high.
- Sustained trading beyond 50-DMA, fortnight-old support line favor buyers.
EUR/GBP takes the bids near 0.8585, up 0.06% intraday, amid the Asian session on Friday. The cross-currency pair jumped the most in a week the previous day after 50-DMA and an ascending trend line from August 12 pushed back the bears.
The upside momentum takes clues from the bullish MACD to signal further advances targeting the 100-DMA level of 0.8590. Also challenging the pair buyers is the 0.8600 threshold.
It should be noted, however, that the quote’s successful trading above the 0.8600 level enables it to challenge the four-month-long resistance line close to 0.8650.
On the contrary, the aforementioned immediate support line around 0.8565 precedes a 50-DMA level of 0.8548 to restrict short-term EUR/GBP declines.
However, a daily closing below 0.8548 will direct the sellers towards a six-week-old horizontal area near 0.8500 before highlighting the monthly low of 0.8450.
EUR/GBP: Daily chart
Trend: Further upside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
