FxWirePro: EUR/GBP eases from 4-1/2 month peak, good to sell on rallies
The euro retreated after rising to a fresh 4-1/2 month peak against the British pound earlier in the session. Sterling attempted a minor recovery as investors wait to see the extent of the British government’s fiscal res…
The euro retreated after rising to a fresh 4-1/2 month peak against the British pound earlier in the session.
Sterling attempted a minor recovery as investors wait to see the extent of the British government’s fiscal response to the virus outbreak.
Investors now await the Bank of England policy meeting outcome on Thursday, alongside the government’s budget today, after incoming BoE governor Andrew Bailey suggested there should be coordinated action.
EUR/GBP is trading 0.2 percent down at 0.8716, having hit a high 0.8847 earlier, its highest since October 11.
Momentum indicators are bearish on hourly charts: RSI weak at 37, MACD supports downside and Stochs are biased lower.
Immediate resistance is located at 0.8868, a break above could take it near 0.8886.
On the downside, support is seen at 0.8682 (5-DMA), a break below could drag it till 0.8667 (7-EMA).
Recommendation: Good to sell on rallies around 0.8741 with stop loss of 0.8766, and target price of 0.8696.
