EUR/GBP Technical Analysis: Bulls now await a follow-through move beyond 200-DMA

Haresh Menghani FXStreet

• The cross had been showing remarkable resilience below the 0.8700 handle over the past week or so and continued finding some buying interest at lower levels.

• The latest UK political development prompted some aggressive short-covering move on Thursday and helped the cross to rebound sharply from near seven-month lows.

• The upsurge helped move past 38.2% Fibonacci retracement level of the 0.9099-0.8656 recent downfall, albeit bulls struggled to build on the momentum beyond 200-day SMA.

• Technical indicators on hourly charts have already moved into overbought territory and are yet to catch up on the daily chart, which seemed to be the only factor capping further gains.

• Hence, it would be prudent to wait for a strong follow-through buying before confirming that the cross might have actually formed a firm base/bottomed out in the near-term.

EUR/GBP daily chart

EUR/GBP

Overview:
    Last Price: 0.8829
    Daily change: 1.3e+2 pips
    Daily change: 1.46%
    Daily Open: 0.8702
Trends:
    Daily SMA20: 0.8795
    Daily SMA50: 0.8838
    Daily SMA100: 0.8881
    Daily SMA200: 0.8835
Levels:
    Daily High: 0.876
    Daily Low: 0.8667
    Weekly High: 0.8774
    Weekly Low: 0.869
    Monthly High: 0.8942
    Monthly Low: 0.8722
    Daily Fibonacci 38.2%: 0.8703
    Daily Fibonacci 61.8%: 0.8725
    Daily Pivot Point S1: 0.8659
    Daily Pivot Point S2: 0.8616
    Daily Pivot Point S3: 0.8565
    Daily Pivot Point R1: 0.8752
    Daily Pivot Point R2: 0.8803
    Daily Pivot Point R3: 0.8846

Author

Haresh Menghani

FXStreet

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

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