FxWirePro: EUR/GBP gains on central bank stimulus expectations, faces strong resistance at 200-DMA
The euro rose, extending previous session rebound against the British pound as the euro rallied across the board on signs of likely stimulus from the European Central Bank. Sterling further weakened as money markets in B…
The euro rose, extending previous session rebound against the British pound as the euro rallied across the board on signs of likely stimulus from the European Central Bank.
Sterling further weakened as money markets in Britain priced in a 25 basis points rate cut at the BoE’s March meeting.
EUR/GBP is trading 0.2 percent up at 0.8687, having hit a high 0.8744 on Wednesday, its highest since October 15.
Momentum indicators are bullish: RSI strong at 66, MACD supports upside and Stochs are at oversold levels
Immediate resistance is located at 0.8714, a break above could take it near 0.8743.
On the downside, support is seen at 0.8632, a break below could drag it till 0.8613 (7-EMA).
Recommendation: Good to buy on dips around 0.8673 with stop loss of 0.8647, and target price of 0.8714.
