- The common currency stages a recovery and gains vs. the pound, up by some 0.41% in the week.
- The market mood remains fragile, though choppy trading is expected in the pair.
- EUR/GBP Price Analysis: Per the daily and 4-hour chart, the pair is upward biased, and a re-test of the YTD highs is on the cards.
The EUR/GBP climbs for the fourth trading session, up by 0.44% on Wednesday amidst a mixed market mood. At 0.8615, the EUR/GBP trades near weekly highs around 0.8624 after bouncing off 0.8568 daily lows printed earlier.
Depicting the mixed sentiment is European bourses trading in the red while US equities rise. The euro rallied after UK’s inflation rose above the 9% threshold and despite a dismal EU Consumer Confidence, which didn’t deter EUR/GBP traders from opening fresh bets against the stagflationary scenario looming in the UK.
EUR/GBP Price Analysis: Technical outlook
EUR/GBP Daily chart
The EUR/GBP is still upward biased, despite the June 15 reversal, in which the pair plummeted 100 pips. Despite the setback, the EUR/GBP has trimmed 50% of those losses. Traders need to be aware that the exchange rate remains above the spot price, meaning that the upward bias remains intact in the near term. Also, the Relative Strength Index (RSI) in the bullish territory aims higher and has broken above the RSI’s 7-period SMA.
EUR/GBP 4-hour chart
In the near term, the EUR/GBP remains in an uptrend, as well as the daily chart. However, the EUR/GBP faces solid resistance at the R2 daily pivot point around 0.8628. The good news for EUR/GBP bulls is that the 20-hourly EMA has crossed above the 50-EMA one, meaning buyers are stepping in to propel the cross towards higher prices.
Therefore, the EUR/GBP first resistance would be the mentioned-above R1 daily pivot around 0.8628. A breach of the latter would expose the 0.8700 figure, followed by the YTD high around 0.8721.
|Today last price||0.8615|
|Today Daily Change||0.0028|
|Today Daily Change %||0.33|
|Today daily open||0.8588|
|Previous Daily High||0.861|
|Previous Daily Low||0.8568|
|Previous Weekly High||0.8721|
|Previous Weekly Low||0.8512|
|Previous Monthly High||0.8619|
|Previous Monthly Low||0.8367|
|Daily Fibonacci 38.2%||0.8594|
|Daily Fibonacci 61.8%||0.8584|
|Daily Pivot Point S1||0.8567|
|Daily Pivot Point S2||0.8546|
|Daily Pivot Point S3||0.8525|
|Daily Pivot Point R1||0.8609|
|Daily Pivot Point R2||0.8631|
|Daily Pivot Point R3||0.8652|
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.