- The cross built on its recent move up and finds acceptance above 100-day SMA.
- The set-up remains in favour of bullish traders and a move towards 0.9100 handle.
The EUR/GBP cross gained some follow-through traction for the fifth consecutive session and climbed to near one-month tops on Thursday, with bulls looking to build on the momentum further beyond the key 0.90 psychological mark.
The mentioned handle coincides with a resistance marked by 38.2% Fibonacci level of the 0.8489-0.9327 strong positive move, which if cleared would be seen as a key trigger for bullish traders amid persistent Brexit-related uncertainties.
Given the recent bounce from the 61.8% Fibo. level, a follow-through strength beyond 100-day SMA further adds credence to the near-term constructive set-up and support prospects for an extension of the recent appreciating move.
Meanwhile, technical indicators on the daily chart have just started gaining positive traction and further reinforce the constructive outlook. However, oscillators on hourly charts are already flashing slightly overbought conditions and warrant some caution.
From current levels, the cross seems more likely to aim towards testing an intermediate resistance near the 0.9070-80 horizontal zone en-route the 0.9100 handle and the next major hurdle near the 0.9125-30 region (23.6% Fibo. level).
On the flip side, immediate support is now pegged near the 0.8870 region, below which the cross might witness some long-unwinding trade and accelerate the slide back towards 50% Fibo. level support near the 0.8900 round-figure mark.
EUR/GBP daily chart
-637062956903804284.png)
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 risks a deeper drop in the short term
AUD/USD rapidly left behind Wednesday’s decent advance and resumed its downward trend on the back of the intense buying pressure in the greenback, while mixed results from the domestic labour market report failed to lend support to AUD.
EUR/USD leaves the door open to a decline to 1.0600
A decent comeback in the Greenback lured sellers back into the market, motivating EUR/USD to give away the earlier advance to weekly tops around 1.0690 and shift its attention to a potential revisit of the 1.0600 neighbourhood instead.
Gold is closely monitoring geopolitics
Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.
Bitcoin price shows strength as IMF attests to spread and intensity of BTC transactions ahead of halving
Bitcoin (BTC) price is borderline strong and weak with the brunt of the weakness being felt by altcoins. Regarding strength, it continues to close above the $60,000 threshold for seven weeks in a row.
Is the Biden administration trying to destroy the Dollar?
Confidence in Western financial markets has already been shaken enough by the 20% devaluation of the dollar over the last few years. But now the European Commission wants to hand Ukraine $300 billion seized from Russia.