- EUR/GBP will end the week with gains of 0.49%.
- Euro buyers neared weekly lows below 0.8400, below the 20, 50 and 200 DMAs.
- A daily close above 0.8500 could open the door for a retest of 0.8600.
The EUR/GBP extended its rise to three consecutive days, breaking above the 100 day EMA, although it took a while to break above the 50 day EMA after hitting a daily high at 0.8511. At the time of writing, the EUR/GBP is trading at 0.8493, up 0.50% from its opening price.
EUR/GBP Price Analysis: Technical Outlook
From a daily chart perspective, EUR/GBP turned from neutral to neutral. In the last week, the broad weakness of the euro brought the pair down from current price levels towards 0.8400. However, the EUR buyers stepped in around the weekly lows around 0.8386 and caused the pair to rally towards the 0.8500 level.
It is worth noting that over the past three days, the rally in the EUR/GBP caused a jump in the Relative Strength Index (RSI), a sign that momentum is on the side of the buyers. Furthermore, the break of a descending trend line from a month ago around 0.8450 exacerbated a rally towards today’s high at 0.8511. Therefore, a break above 0.8500 is in the offing.
Therefore, the first resistance on the EUR/GBP will be the confluence of the 50-day EMA at 0.8499 and the 0.8500 figure. Once broken, the next stop will be Friday’s high at 0.8511, which, once broken, would head towards a two-month downtrend line around 0.8550 before rising to 21 Jul high at 0.8584.
EUR/GBP daily chart
EUR/GBP Key Technical Levels
Source: Fx Street
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