EUR/GBP Technical analysis: Testing 5-week rising trendline

EUR/GBP is currently trading just above the support of the trendline connecting the Nov. 13 and Dec. 7 lows.
Acceptance below that trendline would imply that the rally from the Nov. 13 low of 0.8656 has ended. A bearish reversal, however, would be confirmed, if and when, the pair violates the higher low pattern with a move below 0.8952.
On the higher side, a strong bounce from the ascending trendline could end up recharging engines for a re-test of the recent high of 0.9087.
The key MAs - 50, 100 and 200 - are trending north and are located one above the other. So, the pair is more likely to see a strong bounce from the ascending trendline support.

Omkar Godbole FXStreet Contributor

4-Hour Chart

Trend: Bullish

EUR/GBP

Overview:
    Today Last Price: 0.8991
    Today Daily change: -4.0 pips
    Today Daily change %: -0.0445%
    Today Daily Open: 0.8995
Trends:
    Previous Daily SMA20: 0.8925
    Previous Daily SMA50: 0.8849
    Previous Daily SMA100: 0.8893
    Previous Daily SMA200: 0.8841
Levels:
    Previous Daily High: 0.9009
    Previous Daily Low: 0.8966
    Previous Weekly High: 0.9089
    Previous Weekly Low: 0.8952
    Previous Monthly High: 0.8932
    Previous Monthly Low: 0.8656
    Previous Daily Fibonacci 38.2%: 0.8993
    Previous Daily Fibonacci 61.8%: 0.8982
    Previous Daily Pivot Point S1: 0.8971
    Previous Daily Pivot Point S2: 0.8947
    Previous Daily Pivot Point S3: 0.8928
    Previous Daily Pivot Point R1: 0.9014
    Previous Daily Pivot Point R2: 0.9033
    Previous Daily Pivot Point R3: 0.9057

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

GBP/USD remains offered near 1.3470

GBP/USD adds to the multi-day negative streak and retreats toward the 1.3470 zone on Wednesday, or four-week troughs. Cable’s deep correction comes on the back of the unabated recovery in the Greenback and the persistent geopolitical concerns.

EUR/USD bounces off lows; still below 1.1600 post-ADP

EUR/USD now manages to pick up some pace and revisits the 1.1580 region on Wednesday. That said, the pair rebounds from earlier two-week lows following some loss of momentum in the US Dollar soon after the ADP report came in short of expectations in August.

Gold treads water above $4,300

Following an earlier pullback to the $4,280 region per troy ounce, Gold prices now regain some composure and reclaim the $4,300 mark, advancing modestly for the day and setting aside three consecutive days of losses. The precious metal’s lacklustre rebound comes amid modest gains in the US Dollar, steady geopolitical uncertainty and mixed US Treasury yields.

WTI advances to mid-$90.00s, fresh high since July 24 amid escalating US-Iran tensions

West Texas Intermediate (WTI) – the benchmark US Crude Oil price – scales higher for the third straight day – also marking the fifth day of a positive move in the previous six – and climbs to a fresh high since July 24 during the Asian session on Wednesday.

BoC set to keep interest rates steady despite sticky inflation

The Bank of Canada is widely expected to keep its policy rate unchanged at 2.25% on Wednesday. This would be the seventh consecutive gathering with the central bank sitting on the fence. The BoC left its policy rate unchanged at 2.25% in July, as widely anticipated.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.