EUR/GBP justifies the downside break of the previous key support confluence as it portrays a three-day downtrend near 0.8760 heading into Friday’s London open. In doing so, the cross-currency pair remains depressed around the Year-To-Date (YTD) lows marked earlier in the week.
A daily closing below the 0.8775-70 support-turned-resistance confluence, comprising the 100-DMA and an upward-sloping trend line from late December 2022 keeps EUR/GBP bears hopeful. Adding strength to the downside bias are the bearish MACD signals and lower high formation since March 08.
That said, the 61.8% Fibonacci retracement level of the pair’s upside from the last December to February, around 0.8710, seems to lure the EUR/GBP bears of late.
Following that, the December 20, 2022’s low near 0.8690 and the 200-DMA level surrounding 0.8685 could act as the key downside support to challenge the EUR/GBP bears, a break of which could quickly drag prices towards the late 2022 trough of near 0.8550.
Alternatively, recovery moves need to provide successful trading above the 0.8770-75 resistance confluence, previous support, to tease the EUR/GBP buyers.
Even so, a one-week-old descending resistance line, around 0.8815, precedes a three-week-old horizontal resistance, near 0.8835, to challenge the EUR/GBP buyers.
To sum up, EUR/GBP is likely to extend the latest south-run towards refreshing the YTD lows.
Trend: Further downside expected
© 2000-2023. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at email@example.com.