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FxWirePro: EUR/GBP upside lacks traction, common currency offered post Lagarde's speech

EUR/GBP chart - Trading View EUR/GBP failed to maintain its positive traction on Thursday, price slip from session highs at 0.8963 and the pair was trading largely unchanged at 0.8929 at around 11:05 GMT. Renewed fears o…

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FxWirePro: EUR/GBP upside lacks traction, common currency offered post Lagarde's speech
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EUR/GBP chart - Trading View 

EUR/GBP failed to maintain its positive traction on Thursday, price slip from session highs at 0.8963 and the pair was trading largely unchanged at 0.8929 at around 11:05 GMT.

Renewed fears of a no-deal Brexit undermined the British pound and remained supportive of its gains early on the day.

However, Lagarde's speech increased the offered tone surrounding the common currency, capping upside in the pair.

ECB President Christine Lagarde said that the surge in coronavirus cases are adding to the already heightened level of uncertainty.

He noted that the euro area economy is expected to be severely affected by the fallout from the rapid increase in infections.

Technical analysis for the pair shows bearish bias. Major and minor trend are strongly bearish and Stochs and RSI are sharply lower.

Price action hovers around strong support at 200-DMA at 0.8939. Break below will open downside in the pair. Next major support aligns at 0.8860 (trendline).

Retrace above 200-DMA could see some sideways grind. Bearish invalidation only above 55-EMA. 
 

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