Forex Trading

EUR/GBP: Looks for Fresh Direction Signal




EURGBP dips in early Thursday’s trading, after a double upside failure at falling 100DMA (0.8572), the lower boundary of strong resistances at 0.8580 zone (including Fibo 38.2% of 0.8714/0.8498 downtrend and a multiple spike highs).

Sterling regained ground after being deflated by UK CPI data and dovish steer from BoE chief Bailey on Wednesday, though more evidence about near-term direction is still needed, as daily studies are mixed.

Solid support lays at 0.8550 (converged 5/55DMA’s, on track to form a bull-cross) with ability to hold above here to keep near-term bias with bulls for fresh attempt through 0.8580 pivots, which would open way for extension towards next key barriers at 0.8600 zone (50% retracement / 200DMA).

Conversely, loss of 0.8550 handle would weaken near-term structure and risk renewed attacks at key 0.8520/00 support zone.

Res: 0.8572; 0.8604; 0.8620.
Sup: 0.8550; 0.8520; 0.8499.





Source link

Leave a Response