EURGBP Extends Losses After Tapping Multi-Month Highs as Optimism Build for a Brexit Deal
After its 80-pip loss on Tuesday, EURGBP gave up more ground in yesterday’s trading as market participants anticipate a Brexit deal. The currency pair peaked at 0.9078 during the Asian session before closing the day at 0.9019, down from its opening price which was at 0.9057.
On the 4-hour time frame, it can be seen that the uptrend on EURGBP is still intact. This is evidenced by the fact that the currency pair is testing support at the rising trendline from connecting the lows of April 30, May 8, June 9, and June 16. This price, around 0.9020, also coincides with the 100 SMA. Reversal candlesticks around this level could mean that buyers may soon push EURGBP to its June 29 highs at 0.9169.
On the other hand, a strong close below the trendline may mean that support on the rising trendline has been invalidated. The currency pair may then continue to trade lower to its near-term support at 0.8910 where it bottomed on June 16.