FxWirePro: EUR/GBP rallies to 4-1/2 month peak, faces major resistance at 200-DMA
The euro rose to a 4-1/2 month peak against the British pound after data showed Eurozone businesses largely withstood the impact of the coronavirus in February, growing at their fastest pace in six months. Eurozone IHS M…
The euro rose to a 4-1/2 month peak against the British pound after data showed Eurozone businesses largely withstood the impact of the coronavirus in February, growing at their fastest pace in six months.
Eurozone IHS Markit’s Composite Purchasing Managers’ Index nudged up to 51.6 in February from January’s 51.3, matching an earlier flash reading.
Moreover, uncertainty about trade talks between Britain and the European Union and growing expectations for UK interest rate cuts further dented the bid tone around the British pound.
EUR/GBP is trading 0.1 percent up at 0.8724, having hit a high 0.8744 earlier, its highest since October 15.
Momentum indicators are bullish: RSI strong at 72, MACD supports upside and Stochs are biased higher.
Immediate resistance is located at 0.8756, a break above could take it near 0.8772.
On the downside, support is seen at 0.8694, a break below could drag it till 0.8676.
Recommendation: Good to buy on dips around 0.8715 with stop loss of 0.8700, and target price of 0.8745.
