EUR/GBP Price Analysis: Trades with modest losses below mid-0.9000s


  • EUR/GBP met with some supply on Monday and eroded a part of Friday’s positive move.
  • The intraday downtick found some support near the key 0.9000 resistance breakpoint.
  • The set-up still favours bullish traders and supports prospects for a move to 0.9100 mark.

The EUR/GBP cross edged lower on the first day of a new trading week and eroded a part of the previous session's positive move to near three-month tops.

The intraday pullback managed to find some support ahead of the key 0.9000 psychological mark, which also marks an important resistance breakpoint. The emergence of some dip-buying near a resistance-turned-support added credence to last week's bullish breakout.

Meanwhile, technical indicators on the daily chart maintained their bullish bias and have also eased from overbought conditions on the 4-hourly chart. This, in turn, adds credence to the constructive outlook and supports prospects for further near-term gains.

Hence, a move beyond Friday's monthly swing highs, around the 0.9070 region, remains a distinct possibility. The cross seems all set to build on the recent appreciating move and aim back towards reclaiming the 0.9100 round-figure mark.

On the flip side, dips towards the 0.9000 level might continue to attract some dip-buying, which should help limit any meaningful downside for the cross. That said, some follow-through weakness below the 0.8980 might now turn the cross vulnerable to accelerate the slide towards the 0.8910 support area.

EUR/GBP 4-hourly chart

fxsoriginal

Technical levels to watch

EUR/GBP

Overview
Today last price 0.9033
Today Daily Change -0.0020
Today Daily Change % -0.22
Today daily open 0.9053
 
Trends
Daily SMA20 0.8954
Daily SMA50 0.8856
Daily SMA100 0.8787
Daily SMA200 0.8695
 
Levels
Previous Daily High 0.9073
Previous Daily Low 0.9007
Previous Weekly High 0.9073
Previous Weekly Low 0.8912
Previous Monthly High 0.9054
Previous Monthly Low 0.8691
Daily Fibonacci 38.2% 0.9047
Daily Fibonacci 61.8% 0.9032
Daily Pivot Point S1 0.9015
Daily Pivot Point S2 0.8978
Daily Pivot Point S3 0.895
Daily Pivot Point R1 0.9081
Daily Pivot Point R2 0.911
Daily Pivot Point R3 0.9147

 

 

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD struggles below 1.1750 as ISM Manufacturing PMI beats

EUR/USD is trading below 1.1750, down amid US dollar strength. The ISM Manufacturing PMI beat with 54.2 points, yet the employment component missed with 44.3, a warning sign ahead of the NFP. Fiscal stimulus figures are awaited.

EUR/USD News

GBP/USD falls toward 1.30 amid a greenback comeback, UK concerns

GBP/USD has kicked off the week on the back foot, trading close to 1.30. Concerns about a lockdown in London, uncertainty about US-UK trade talks are weighing on the pound. The US dollar is gaining ground.

GBP/USD News

Gold: Interesting Fibonacci extension projects a move to $2500

Gold has risen 10.74% in the month of July, the biggest monthly increase since February 2016. As the price is breaking all-time highs it's hard to say where the yellow metal could end up.

Gold News

ETH/BTC skyrocketing, Bitcoin stays above $11,000

The cryptocurrency market is influenced by leveraged positions liquidation. Cryptocurrency experts expect further growth amid a global flight to safety assets. ETH/BTC hits the highest level since May 2019.

Read more

WTI drops below $40 on demand worries, OPEC+ output increase

Crude oil prices posted losses last week and seem to be struggling to shake off the bearish pressure on Monday. As of writing, the barrel of West Texas Intermediate (WTI) was trading at $39.85, losing 1.5% on a daily basis.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures