EURGBP: Bullish Bias Intact
EURGBP rebounds today adding 0.35% at 0.9143 as the euro was under pressure after disappointing macro data from EU. Yesterday, the CBI Industrial Trends Survey – Orders (MoM) which came in at -13 topping expectations of -2 in August.
On the technical analysis side the bulls are still in control of EURGBP as the pair trades above all major moving averages and as of writing the pair managed to break above the 50 hour moving average. The pair registered a huge rally since May bottoming out around 0.8500 and hitting the high of 0.9323 in August 12th. The correction went back to 0.9089 and today breaches the 50 hour moving average that might drive the pair at 0.9208 the 200 hour moving average. On the upside immediate resistance stands at 0.9183 yesterday’s high while more offers will emerge at the 0.9208 the 200 hour moving average. On the downside first support stands at 0.9114 today’s low while next barrier is at 0.9038 the 50 day moving average. Investors holding long positions can sit comfortably as long as the pair trades above 0.91. For those looking to sell EURGBP a break below 0.91 could be the signal for a correction down to 0.90 zone.