Sat, Oct 23, 2021 @ 00:35 GMT
HomeContributorsTechnical AnalysisEUR/GBP: Support Turned Resistance At 0.8560

EUR/GBP: Support Turned Resistance At 0.8560

Key Highlights

  • EUR/GBP is facing resistance near 0.8560 and 0.8570.
  • There was a break below a major bullish trend line at 0.8575 on the 4-hours chart.
  • EUR/USD must stay above 1.1780 to start a fresh increase.
  • GBP/USD is holding gains above the main 1.3800 support zone.

EUR/GBP Technical Analysis

The Euro failed to settle above the 0.8600 resistance against the British Pound. As a result, EUR/GBP saw a bearish reaction below the 0.8560 support level.

Looking at the 4-hours chart, the pair traded below a major bullish trend line with support at 0.8575. There was also a close below the 0.8560 level and the 100 simple moving average (red, 4-hours).

The pair spiked below the 0.8520 level and the 200 simple moving average (green, 4-hours). It traded as low as 0.8510 before it started an upside correction. There was a break above the 0.8535 level. The pair even climbed above the 38.2% Fib retracement level of the recent decline from the 0.8613 swing high to 0.8510 low.

However, the bears protected the last key support (now resistance) at 0.8560. The 50% Fib retracement level of the recent decline from the 0.8613 swing high to 0.8510 low is also acting as a resistance.

To start a fresh increase, the pair must clear 0.8560 and 0.8570. On the downside, there is a major support forming near the 0.8510 zone. The next major support is near 0.8500. Any more losses might push the pair towards the 0.8460 support zone in the near term.

Looking at EUR/USD, the pair is struggling to stay above the 1.1780 support. Besides, GBP/USD is stable above the main 1.3800 support zone.

Economic Releases

  • US Initial Jobless Claims – Forecast 328K, versus 310K previous.
  • Canada’s ADP Employment Change for August 2021 – Forecast 110K, versus 221.3K previous.

 

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