- EUR/GBP is set to finish the week with gains of 0.49%.
- Euro buyers stepped in around weekly lows below 0.8400, under the 20, 50, and 200-DMAs.
- A daily close above 0.8500 might open the door for a re-test of 0.8600.
The EUR/GBP extended its rally to three consecutive days, breaking on its way north the 100-day EMA, though it struggled to get above the 50-day EMA after reaching a daily high at 0.8511. At the time of writing, the EUR/GBP is trading at 0.8493, above its opening price by 0.50%.
EUR/GBP Price Analysis: Technical outlook
From a daily chart perspective, the EUR/GBP shifted from neutral-downwards to neutral. In the last week, broad euro weakness tumbled the pair from current price levels towards 0.8400. However, EUR buyers stepped in around weekly lows at around 0.8386 and sent the cross-currency rallying toward the 0.8500 figure.
Worth noting that during the last three days, the EUR/GBP rally sparked a jump in the Relative Strength Index (RSI), a sign that momentum is on the side of buyers. Additionally, the break of a one-month-old downslope trendline around 0.8450 exacerbated a rally towards today’s high at 0.8511. So a break above the 0.8500 mark is on the cards.
Therefore, the EUR/GBP first resistance will be the confluence of the 50-day EMA at 0.8499 and the 0.8500 figure. Once cleared, the next stop will be Friday’s high at 0.8511, which, once broken, would aim towards a two-month-old downslope trendline around 0.8550 before climbing to the July 21 high at 0.8584.
EUR/GBP Daily chart
EUR/GBP Key Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD nears 1.1200 after US PCE inflation data
EUR/USD approaches 1.1200 following generally softer-than-anticipated US inflation-related figures. The pair lacks momentum amid tepid European data undermining demand for the Euro. Still, optimism weighs on the USD.
GBP/USD battles the 1.3400 level for a definitive bullish breakout
GBP/USD advances modestly beyond the 1.3400 level after US PCE inflation data showed price pressures continued to recede in August. Sterling Pound aims for fresh yearly highs beyond the 1.3433 peak posted earlier this week.
Gold hovers around $2,670 as US Dollar resumes decline
Gold price retains its bullish bias near fresh record highs, as demand for the US Dollar remains subdued following US PCE inflation figures. The strong momentum around stocks limits demand for the safe-haven metal.
Week ahead – NFP on tap amid bets of another bold Fed rate cut
Investors see decent chance of another 50bps cut in November. Fed speakers, ISM PMIs and NFP to shape rate cut bets. Eurozone CPI data awaited amid bets for more ECB cuts. China PMIs and BoJ Summary of Opinions also on tap.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.