EURGBP staged a mighty rally over the past weeks, crossing above its 50- and 200-day simple moving averages (SMAs) to touch the 0.8840 zone, before retreating somewhat. The near-term outlook seems to have turned positive, though a clear break above 0.8840 is needed to confirm that.

Short-term momentum indicators, on the other hand, suggest a pullback may be looming. The RSI turned lower after entering its overbought zone, while the MACD seems to be topping above its trigger line.

A potential pullback could stall initially near the 200-day SMA, currently at 0.8781. A bearish break may open the door for a test of the 0.8680 area, where another violation would turn the outlook back to neutral.

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On the flipside, if the bulls stay in control, the next obstacle is 0.8840. If buyers pierce above it, that would reaffirm the positive picture, paving the way for a test of 0.8925.

In short, a decisive move above 0.8840 would turn the picture to firmly positive, whereas a break back below 0.8680 would turn it neutral, from cautiously positive now.

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