EUR/GBP Price Analysis: Consolidates in a range near 200-DMA, around mid-0.8700s

EUR/GBP failed to capitalize on the post-BoE rate cut move to five-month tops.
The set-up seems tilted in favour of bulls and points to further near-term gains.

Haresh Menghani FXStreet

The EUR/GBP cross gained some intraday traction and spiked to fresh five-month tops, around mid-0.8800s, in reaction to the Bank of England's emergency rate cut on Wednesday.

However, the momentum faltered near a resistance marked by 50% Fibonacci level of the 0.9398-0.8276 downfall, which should now act as a key pivotal point for short-term traders.

Given that the cross finally seems to have found acceptance above the very important 200-day SMA, the bias seems tilted in favour of bulls and support prospects for additional gains.

However, technical indicators on the daily chart are on the verge of moving into overbought territory, which seemed to be the only factor holding traders from placing fresh bullish positions.

Hence, it will be prudent to wait for some strong follow-through buying beyond the mentioned barrier before positioning for a further appreciating move towards the 0.8900 round-figure mark.

Meanwhile, a sustained break below the recent daily closing lows support, near the 0.8640 region, might negate any bullish bias and pave the way for some near-term profit-taking slide.

EUR/GBP daily chart

Technical levels to watch

EUR/GBP

Overview
Today last price	0.8752
Today Daily Change	0.0014
Today Daily Change %	0.16
Today daily open	0.8738

Trends
Daily SMA20	0.85
Daily SMA50	0.8491
Daily SMA100	0.8517
Daily SMA200	0.8741

Levels
Previous Daily High	0.8782
Previous Daily Low	0.8681
Previous Weekly High	0.8746
Previous Weekly Low	0.8594
Previous Monthly High	0.8644
Previous Monthly Low	0.8282
Daily Fibonacci 38.2%	0.8743
Daily Fibonacci 61.8%	0.8719
Daily Pivot Point S1	0.8685
Daily Pivot Point S2	0.8633
Daily Pivot Point S3	0.8585
Daily Pivot Point R1	0.8786
Daily Pivot Point R2	0.8834
Daily Pivot Point R3	0.8886

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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