FxWirePro: EUR/GBP bounces off Wedge base support, edges above 5-DMA
EUR/GBP chart - Trading View
EUR/GBP was trading 0.32% higher on the day at 0.8926 at around 11:20 GMT, after closing 0.16% higher in the previous session.
The pair has held strong support at Wedge base and further weakness only on decisive break below.
Single currency appreciates across the board as positive market sentiment amid promising COVID-19 vaccine news and upbeat data translate into solid advances across crosses.
Eurozone macroeconomic figures have remained above expectations. The German IFO business climate survey and third quarter’s GDP have shown better than expected readings earlier this week.
On the flipside, some fresh selling seen around the British pound after European Commission president, Ursula von der Leyen raised doubts over the prospects for a Brexit deal.
Ursula said that the disagreement over access to Britain's fishing waters continues to block progress.
Major technical bias for the pair remains bearish. Upticks are likely to be limited. Scope for resumption of weakness.
On the flipside, 200-DMA is strong resistance. Retrace above will dent further downside in the pair.