EUR/GBP Price Analysis: Advances for the fifth day, secure 0.8700 as solid support
- EUR/GBP maintains its upward momentum, trading at 0.8731, as it solidifies the 0.8700 level as a crucial support.
- The pair shows a bullish bias, but a failure to surpass the 0.8755 high could invite bearish activity.
- Key levels to watch include resistance at 0.8800 and 0.8834, with support at the 200-DMA of 0.8688 and the 50-DMA at 0.8657.
EUR/GBP climbed during Friday’s session, extending its rally to five consecutive days, gaining so far 0.89% in the week, cementing the 0.8700 psychological level as solid support for the next week. At the time of writing, the cross-pair trades at 0.8731, up a decent 0.13%.
The EUR/GBP pair is bullish biased but downside risks remain. Unless buyers reclaim today’s high at 0.8755, bears are lurking. In the event of a bullish resumption, the cross’s first resistance would be the 0.8800 mark, followed by the May 3 high at 0.8834, followed by April’s 25 high at 0.8875.
Conversely, if EUR/GBP drops below 0.8700, the first support would be the 200-day moving average (DMA) previously broken at 0.8688 followed by the 50-DMA at 0.8657, before diving to the latest cycle low of 0.8649.
EUR/GBP Price Analysis – Daily Chart
EUR/GBP Technical Levels
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
