|

EUR/GBP taps 0.90 mark for the first time since Oct. 20

   •  Bullish for the third consecutive session.
   •  Gains nearly 250-pips from post-ECB swing lows. 
   •  Follow-through traction needed to confirm further up-move. 

The upside momentum around the shared currency continues to gather momentum, now pushing the EUR/GBP cross to test the key 0.90 psychological mark.

The latest UK political development triggered the initial leg of up-move at the start of this week, which got an additional boost from Tuesday better-than-expected German GDP print and a slight miss from the UK inflation figures. 

   •  EUR: More to give? - Rabobank

With the GBP bulls unimpressed by today's better-than-expected UK jobs data, the cross continued gaining traction for the third consecutive session and moved past pre-ECB highs to its highest level since Oct. 20.

   •  UK: Signs of slowing in the labor market - BBH

The market now seems to have digested the UK macro data and it would now be interesting to see if the bulls maintain their dominant position or the cross, for the third time since early Oct., fails to sustain above the 0.9000 handle. 

   •  EUR/GBP could visit the 0.9030 area – Commerzbank

Technical levels to watch

Bullish momentum beyond the mentioned handle is likely to confront fresh supply near the 0.9030-35 region, above which the cross is likely to aim towards reclaiming the 0.9100 handle.

On the flip side, 0.8975-70 area now becomes immediate support, which if broken could drag the cross back towards 0.8925 intermediate support en-route the 0.8900 handle.
 

Author

Haresh Menghani

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

More from Haresh Menghani
Share:

Editor's Picks

EUR/USD stays depressed near 1.1850 ahead of German ZEW

EUR/USD remains in the red near 1.1850 in the European session on Tuesday. A broad US Dollar bullish consolidation combined with a softer risk tone keep the pair undermined ahead of the German ZEW sentiment survey. 

GBP/USD drops below 1.3600 after weak UK jobs report

GBP/USD is seeing a fresh selling wave, giving up the 1.3600 level in Tuesday's European trading. The United Kingdom employment data showed worsening labor market conditions, bolstering bets for a BoE interest rate cut next month. This narrative is weighing heavily on the Pound Sterling. 

Gold pares intraday losses; keeps the red above $4,900 amid receding safe-haven demand

Gold (XAU/USD) attracts some follow-through selling for the second straight day and dives to over a one-week low, around the $4,858 area, heading into the European session on Tuesday. 

Pi Network rallies ahead of its first anniversary

Pi Network trades above $0.1800 at the time of writing on Tuesday, recording nearly 5% gains so far. On-chain data indicate that large wallet investors, commonly known as whales, have accumulated approximately 4 million PI tokens over the last 24 hours.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

Stellar mixed sentiment caps recovery

Stellar price remains under pressure, trading at $0.170 on Tuesday after failing to close above the key resistance on Sunday. The derivatives metric supports the bearish sentiment, with XLM’s short bets rising among traders and funding rates turning negative.