EURGBP Correction Stalled At The 50-Day SMA


EURGBP finds support at the 50-day moving average at least for now as it hit the daily lows at 0.8945 and bounced above the 0.8950 mark. Euro reacted positively on better than expected economic news from European countries. Today reported that industrial production rebounded today in Italy and France. 

Industrial Production Rebounds in Italy and France

France Industrial Output came in at 19.6% topping the expectations of 15.1% in May. In Italy the Industrial Production grew 42.1% in May, this is much better growth than the 22.8% increase forecasted by analysts. 

Stronger industrial production for both countries came by an increase in capital goods and transport equipment. 

On the Brexit negotiations, European Council President Michel said that the commission would ask to prepare a Brexit need assessment by February 2021 to support countries and sectors that would be most affected. The commission might also extend the support from the proposed 5 billion euro Brexit fund.

EURGBP Price Technical Analysis   

EURGBP is 0.01% lower at 0.8950, as the pair extends the correction from June 29th highs and now tests the support at the 50-day moving average. The technical outlook for EURGBP keeps the bullish momentum alive above the 50-day moving average, while a credible break below might test the next target at 0.8877.  

On the downside, the initial support for the pair stands at 0.8945 the 50-day moving average and the daily low. A close below 0.8945 might challenge the next support area at 0.8877 the 100-day moving average. More support for the pair would emerge at 0.8828 the low from May 15th.  

On the other side, immediate resistance for EURGBP pair stands at 0.8969 the daily top. A break above 0.8969 might test the next hurdle at 0.8997 the high from July 9th trading session. If the EURGBP breaks higher, then might challenge the next supply zone at 0.9052 the high from July 7th. 

Don’t miss a beat! Follow us on Telegram and Twitter.

EURGBP Price Daily Chart

More content