EURGBP: Testing the Crucial 50 Day MA
EURGBP gives up 0.20% at 0.9064 as the correction from 0.9316 highs finds strong support at the 50 day moving average. United Kingdom BBA Mortgage Approvals came in at 43.342K, topping expectations of 42.8K in July. UK Parliament will be back in business in September 3, so Brexit developments will heat up in the coming weeks.
On the technical analysis side the bulls are still in control of EURGBP as the pair trades above all major daily moving averages and as of writing the pair holds above the 50 day moving average, a level that also tested yesterday; above that the pair is testing the lower bound of the ascending channel since April 2019. EURGBP registered a huge rally since May bottoming out around 0.8500 and hitting the high of 0.9323 in August 12th. On the upside, immediate resistance stands at 0.9093 today’s high, while more offers will emerge at the 0.9112 the 200-hour moving average. On the downside, first support stands at 0.9064 today’s low while the next barrier is at 0.8978 the low from July 29th. Investors holding long positions can sit comfortably as long as the pair trades above 0.90. For those looking to sell EURGBP a break below 0.90 could be the signal for a correction down to 0.8950 zone.