- EUR/GBP adds to current range bound trade.
- Market sentiment continues to lean towards risk appetite.
- EMU consumer confidence is the next appointment on the calendar.
A further improvement in appetite for the risk complex lifts the EUR/GBP close to the 0.8700 barrier so far on Monday.
EUR/GBP: The rise seems capped by the 200-day SMA
EUR/GBP is moving towards 2-day highs and touching the critical zone of 0.8700 towards the start of the week, a region coincident with the 200-week SMA. On the weekly chart, the EUR/GBP pair starts the week with gains after five consecutive reversals.
Furthermore, the cross contributes to the recent marginal advance as it remains within the multi-session consolidative mood below the 200-day SMA, which is currently sitting near 0.8740.
After it seems that a recession has been avoided on both sides of the English Channel, the cross continues to closely monitor the evolution of the ECB and the BoE, as well as the outlook for both economies.
So far, the hawkish views of both central banks support the idea that further tightening seems the most likely scenario in the next month.
technical levels
The cross gains 0.08% at 0.8686 and faces the next resistance level at 0.8743 (200-day SMA), followed by 0.8834 (3 May monthly high) and then 0.8875 (25 April monthly high). On the other hand, a break of 0.8661 (May 11 low) would expose 0.8547 (Dec 1, 2022 monthly low) and finally 0.8386 (Aug 17, 2022 weekly low).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
