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FxWirePro: EUR/GBP trades rangebound, finds support near 0.87 handle

EUR/GBP is trading in a narrow range below 5-DMA, finds support near 0.87 handle. The pair hit session high of 0.8719 and a low of 0.8709 and is currently trading at 0.8714, largely unchanged on the day. The pair rebound…

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FxWirePro: EUR/GBP trades rangebound, finds support near 0.87 handle
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  • EUR/GBP is trading in a narrow range below 5-DMA, finds support near 0.87 handle.
     
  • The pair hit session high of 0.8719 and a low of 0.8709 and is currently trading at 0.8714, largely unchanged on the day.
     
  • The pair rebounded sharply in previous session on Nowotny's hawkish comments.
     
  • ECB Governing Council member Ewald Nowotny, said that the European Central Bank will end asset buys this year.
     
  • The major reversed dip to 0.8692 level and closed above 0.87 handle at 0.8714.
     
  • Technical studies are biased lower. Price action edges lower in a falling channel pattern and we see scope for further weakness.
     
  • Next bear target lies at 61.8% Fibo at 0.8682 ahead of major trendline support at 0.8665.
     
  • On the flipside, 21-EMA at 0.8757 strong resistance. Breakout at 21-EMA cloud see some upside.

Support levels - 0.8682 (61.8% Fib), 0.8665 (major trendline), 0.86

Resistance levels - 0.8720 (5-DMA), 0.8757 (21-EMA), 0.88 (50% Fib)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-GBP-breaks-below-5-DMA-eyes-channel-base-at-08675-stay-short-1233011) has hit TP1.

Recommendation: Bias lower, hold for further weakness.

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