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EURGBP at 2-Month Lows on Positive Brexit Developments

EURGBP at 2-Month Lows on Positive Brexit Developments
EURGBP at 2-Month Lows on Positive Brexit Developments

EURGBP gives up 0.76% at 0.8898, making fresh 2-month lows after positive Brexit developments. On the macro front the European Monetary Union Trade Balance n.s.a. came in at €24.8B, topping forecasts of €17.4B in July. The EU Labor Cost rose from previous 2.4% to 2.7% in 2Q

On the technical analysis side the bears now are in control. On the downside, first support stands at 0.8893 today’s low, while next barrier is at 0.8840 the 200-day moving average. On the upside immediate resistance stands at 0.8973 today’s high, while more offers will emerge at the 0.9064 the 50-day moving average. It is important for bulls that the pair will climb above the 0.9113, the lower band of the ascending channel that will enhance the positive momentum. Investors holding short positions can sit comfortably as long as the pair trades below 0.90. For those looking to buy the pair a break above 0.90 could be the trigger for a leg higher to 0.9050 zone.