EURGBP trading 0.35% higher at 0.8891 as it continues the rebound from 4-month lows at 0.8784. Earlier today, Bank of England’s Saunders said that there is a possibility of an interest rate cut even if a no-deal Brexit avoided. He also added that interest rates could go either way after Brexit, and the persistent uncertainty weighs on UK economy. Economic date from EU came mixed, but euro investors cheered the improvement in Consumer Confidence that came in at -6.5, beating expectations of -6.8 in September. The EU Economic Sentiment Indicator came in at 101.7 below expectations of 103, the Industrial Confidence came in at -8.8, below forecasts of -6 in September, while the Business Climate came in at -0.22, also below expectations of 0.11 for September.
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EURGBP Technical Analysis
EURGBP positive momentum gains traction as the pair holds above the critical 200-day moving average. On the technical analysis side, the momentum is neutral for the short term. Bears are in control for the longer term as the pair trading below the 50 and 100-day moving averages. On the upside immediate resistance stands at 0.8895 today’s high, while a break above will open the way for a move up to 0.8962 the 100-day moving average. For those looking to buy the pair, an entry point can be when the pair breaks convincingly above the 0.8895 top.
On the downside, first support stands at 0.8845 today’s low, then at 0.8784 Friday’s low, while next barrier is at 0.8723 the low from May 21st. Investors holding short positions can sit comfortably as long as the pair trades below 0.89.Download our latest quarterly market outlook for our longer-term trade ideas.
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