EURGBP Bears Targeting 0.8916

EURGBP gives up 0.45% at 0.8963, making fresh monthly lows as the pair trades below the ascending channel that drove the pair to yearly highs. UK Parliament voted a bill to force Prime Minister Boris Johnson to request an extension if he is unable to agree to a Brexit deal with the EU. UK is scheduled to leave EU on October 31. On the data front, Germany Factory Orders n.s.a. (year over year) came in at -5.6% below expectations of -1.1% in July as the downward spiral of German industry continues.

On the technical analysis side the bulls have lost control of the short term as the pair pierced yesterday the 50-day moving average. On the downside, first support stands at 0.8916 the 100-day moving average, while next barrier is at 0.8839 the 200-day moving average. On the upside immediate resistance stands at 0.9029 today’s high, while more offers will emerge at the 0.9081 yesterday’s high. It is important for bulls to climb above the 0.9113, the lower band of the ascending channel that will enhance the positive momentum. Investors holding short positions can sit comfortably as long as the pair trades below 0.90. For those looking to buy the pair a break above 0.90 could be the trigger for a leg higher to 0.9050 zone.Don’t miss a beat! Follow us on Telegram and Twitter.

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