- EUR/GBP remains sidelined after rising the most in two weeks the previous day.
- Failures to cross 50% Fibonacci retracement, sluggish oscillators keep sellers hopeful.
- Weekly support line appears a tough nut to crack for the bears.
- Preliminary readings of S&P Global PMIs for May, ECB’s Lagarde eyed for fresh impulse.
EUR/GBP takes rounds to 0.8500 following the run-up to refresh a one-week high, recently easing to 0.8490 heading into Tuesday’s European session.
In doing so, the cross-currency pair pares the biggest daily jump in 13 days while fading the bounce off the 200-HMA.
It’s worth noting that the preliminary readings of the UK and Eurozone S&P Global Manufacturing and Services PMIs for May, as well as a speech from ECB President Christine Lagarde, become crucial for the EUR/GBP traders to watch.
Given the bearish MACD signals and descending RSI (14) line, not oversold, EUR/GBP prices are likely to remain pressured.
However, a clear downside break of the 200-HMA level near 0.8485 becomes necessary for the pair sellers to retake control.
Even so, an upward sloping trend line from May 17, close to 0.8445, could test the quote’s further declines before highlighting the 0.8400 round figure.
Alternatively, 50% Fibonacci retracement (Fibo.) of May 12-17 downside, at 0.8505, guards the EUR/GBP pair’s recovery moves.
Following that, the 61.8% Fibo. near 0.8535 and the 0.8600 threshold may test the pair buyers before directing them to the monthly high, also the highest since late September 2021, close to 0.8620.
EUR/GBP: Hourly chart
Trend: Further weakness expected
Additional important levels
|Today last price||0.849|
|Today Daily Change||-0.0003|
|Today Daily Change %||-0.04%|
|Today daily open||0.8493|
|Previous Daily High||0.8504|
|Previous Daily Low||0.8433|
|Previous Weekly High||0.8534|
|Previous Weekly Low||0.8393|
|Previous Monthly High||0.8467|
|Previous Monthly Low||0.825|
|Daily Fibonacci 38.2%||0.8477|
|Daily Fibonacci 61.8%||0.846|
|Daily Pivot Point S1||0.8449|
|Daily Pivot Point S2||0.8406|
|Daily Pivot Point S3||0.8378|
|Daily Pivot Point R1||0.852|
|Daily Pivot Point R2||0.8547|
|Daily Pivot Point R3||0.8591|
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.