EURGBP Strong Rebound From the 50 Day MA
EURGBP gives up 0.28% at 0.8972, close to monthly lows as the pair trades below the ascending channel that drove the pair to yearly highs. Traders await the ECB decision on Thursday for more clarity.
On the technical analysis side the bulls have lost steam as EURGBP testing the last two trading sessions the 50-day moving average. On the downside, first support stands at 0.8923 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 0.9013 yesterday’s high. It is important for long positions 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.