FxWirePro: EUR/GBP retreats from 4-1/2 month peak, finds resistance at 200-DMA
The euro declined against the British pound but remained close to 4-1/2 month peak as concerns about ongoing fractious Brexit trade talks continue to weigh on the British currency. The pair continues to struggle to susta…
The euro declined against the British pound but remained close to 4-1/2 month peak as concerns about ongoing fractious Brexit trade talks continue to weigh on the British currency.
The pair continues to struggle to sustain gains above major resistance at 200-DMA.
Investors now await the UK government's Budget tomorrow and Bank of England policy meeting outcome on Thursday, for further cues on the economy.
EUR/GBP is trading 0.3 percent down at 0.8684, having hit a high 0.8766 on Monday, its highest since October 14.
Momentum indicators are bearish on hourly charts: RSI weak at 39, MACD supports downside and Stochs are biased lower.
Immediate resistance is located at 0.8741 (200-DMA), a break above could take it near 0.8775.
On the downside, support is seen at 0.8670, a break below could drag it till 0.8644 (7-EMA).
Recommendation: Good to sell on rallies around 0.8705 with stop loss of 0.8717, and target price of 0.8670.
