FxWirePro: EUR/GBP fails to extend rally above 200-DMA, retraces early gains
The euro surged against the British pound as the euro gained strengthened across the board. The pair broke above major resistance at 200-DMA, but struggled to extend gains above it. Sterling continues to remain on the do…
The euro surged against the British pound as the euro gained strengthened across the board.
The pair broke above major resistance at 200-DMA, but struggled to extend gains above it.
Sterling continues to remain on the downside as money markets in Britain priced in at least 25 basis points rate cut by the BoE when it next meets on March 26 and nearly 50 basis points of cuts by the end of the year.
EUR/GBP is trading 0.3 percent up at 0.8667, having hit a high 0.8766 earlier, its highest since October 14.
Momentum indicators are bullish: RSI strong at 64, MACD supports upside and Stochs are at oversold levels
Immediate resistance is located at 0.8743, a break above could take it near 0.8775.
On the downside, support is seen at 0.8647, a break below could drag it till 0.8621 (7-EMA).
Recommendation: Good to buy on dips around 0.8676 with stop loss of 0.8647, and target price of 0.8743.
