- The shared currency finished the week with decent gains of 0.21%.
- Sentiment remains optimistic, despite recession fears threatening.
- EUR/GBP Price Analysis: Remains upwards but struggling at 0.8600 might open the door for selling pressure.
The EUR/GBP accelerates for the fourth day out of five in the week, set to finish with decent gains of 0.21%. On Friday, the cross-currency pair slumped towards its daily low at 0.8561, then snapped back and rose towards 0.8600. At 0.8595, the EUR/GBP retained the control and extended its weekly rally to two consecutive weeks.
Wall Street is set to finish the week on an upbeat tone, registering gains in the range of 2.34% and 2.73%. US economic slowdown, alongside lower inflation expectations, revealed at the University of Michigan June’s Consumer sentiment report tempered expectations for the Federal Reserve hike plan.
Reflection of the abovementioned are money market futures STIRs, showing that traders expect the Federal funds rate (FFR) to end around 3.50%, aligned with the St. Louis Fed President James Bullard’s forecast.
Friday’s EUR/GBP price action shows that the cross opened near 0.8580s and dipped towards 0.8561 before bouncing off those lows, settling around 0.8590. nevertheless, the lack of a EUR/GBP bullish impulse kept the pair below the 0.8600 threshold.
EUR/GBP Price Analysis: Technical outlook
Daily chart
EUR/GBP price action depicts the pair as upward biased. However, buyers unable to break above the 0.8650 kept the cross-currency range-bound in the 0.8550-0.8650 area, meaning consolidation lies ahead. Further confirmation of that is the Relative Strength Index (RSI) At 55.36, in positive territory but with an almost horizontal slope.
Therefore, the EUR/GBP top of the range is 0.8650. A breach of the latter would expose the 0.8700 figure. Once cleared, the next ceiling level would be the YTD high at 0.8720, followed by 0.8800.
On the flip side, the EUR/GBP first support is the 20-EMA at 0.5857. Break below would expose June’s 16 low at 0.8511, followed by the 50-EMA at 0.8493.
EUR/GBP Key Technical Levels
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.
Recommended content
Editors’ Picks
AUD/USD: Extra gains in the pipeline above 0.6520
AUD/USD partially reversed Tuesday’s strong pullback and regained the 0.6500 barrier and beyond in response to the sharp post-FOMC pullback in the Greenback on Wednesday.
EUR/USD meets support around 1.0650
EUR/USD managed to surpass the key 1.0700 barrier in response to the intense retracement in the US Dollar in the wake of the Fed’s interest rate decision and Chair Powell’s press conference.
Gold surpasses $2,300 as Dollar tumbles
The precious metal maintains its constructive stance and trespasses the $2,300 region on Wednesday after the Federal Reserve left its FFTR intact, matching market expectations.
Bitcoin price reclaims $59K as Fed leaves rates unchanged
The market was at the edge of its seat on Wednesday to see whether the US Federal Reserve (Fed) would cut interest rates during the Federal Open Market Committee (FOMC) meeting.
The market welcomes the Fed's statement
The market has welcomed the Fed statement, and the S&P 500 is higher in its aftermath, the dollar is lower and Treasury yields are falling. There is still only one cut priced in by the Fed.