EUR to GBP: EURGBP Tests SMAs, Rally to 0.9500 Eyed

EURGBP
EURGBP

The EUR to GBP exchange rate has recently been trading lower. However, technicals suggest that EURGBP may soon rally to 0.9500.

On the weekly time frame, it can be seen that EURGBP has retraced most of its gains back to the 61.8% Fib level (when drawing the Fibonacci retracement tool from the low of February 16 to the high of March 15). This price also corresponds to the 100 SMA and 200 SMA.

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A closer look at the daily chart would reveal that the currency pair is finding support at the 200 SMA. Reversal candlesticks at its current price, around 0.8765, may suggest that EURGBP could be priming for a rally to its March highs at 0.9498.

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Zooming in to the 4-hour time frame, it can be seen that the currency pair has broken resistance at the falling trend line (from connecting the highs of March 19, March 23, and March 25). Recently, EURGBP tested the said trend line but for support. This could suggest that buyers may be priming for a rally towards the recent highs at 0.9480.

Alternatively, a bearish close below the low of April 3 could mean that there may still be sellers left in the market. It could then suggest that EURGBP could drop to its February lows at 0.8295.More content